FOCUS AI Announces 8 Billion Won Third-Party Allotment at 10% Discount: 11.3% Dilution for Operating Capital Raises Investor Caution

FOCUS AI decided to issue 4,149,377 new common shares (approximately 11.3% increase from total outstanding) via third-party allotment to raise 8 billion won for operating capital
The issuance price is 1,928 won, a 10% discount from the reference price of 2,141 won, and approximately 17% below the current market price of 2,325 won
Proceeds will be used for R&D expenses (labor and material costs) for physical security technology development: 5 billion won in 2026, 2 billion in 2027, and 1 billion in 2028 and beyond
The allottee is J Planning Co., Ltd. (a related party wholly owned by Yang Jae-seok, newly established in 2026) and all 4,149,377 shares will be subject to a 1-year lock-up
This capital increase dilutes existing shareholders' equity and the use of funds for operating capital rather than growth initiatives limits near-term stock price upside