Termination of Treasury Share Trust Agreement and Planned Full Cancellation Within Year… Expected to Enhance Shareholder Value
New Kids On decided to terminate early the treasury share acquisition trust agreement (worth 1 billion won) signed on March 24, 2026, effective May 27.
Upon termination, 240,073 common shares (2.93% of total outstanding) acquired through the trust will be returned to the company in physical form.
As of termination, the company holds a total of 548,107 treasury shares (6.70% of outstanding), comprising 240,073 from this trust and 308,034 from other acquisitions (3.76%).
The company previously disclosed on March 24 that it plans to decide on full cancellation of all treasury shares within the year, considering business plans, boosting expectations for shareholder value enhancement.
If fully cancelled, total outstanding shares would decrease from 8,185,121 to approximately 7,637,014, leading to higher EPS and increased ownership percentage per share.
Treasury share cancellation sends a positive signal to the market and is likely to act as a near-term catalyst for the stock price.
KOSDAQ Filing Information
Filing: Report on Major Matters (Decision on Termination of Trust Agreement for Acquisition of Treasury Shares)