Quratis Approves 9-to-1 Capital Reduction at EGM… Shares to Decrease by 88.9% to Improve Financial Structure, Raising Dilution Concerns for Existing Shareholders

At the EGM on June 1, 2026, the 9-to-1 capital reduction for deficit coverage passed as a special resolution (100% approval, 49.3% attendance)
Accordingly, common shares will decrease from 115,449,781 to 12,827,753 (88.9% reduction), and capital stock from KRW 57.7B to KRW 6.4B
Record date for reduction is July 2, 2026; new shares listing on July 22, 2026 (delayed due to added creditor objection period)
Purpose is to eliminate accumulated deficits and improve financial structure; while per-share value may increase post-reduction, short-term price pressure is likely
Major shareholder Inventage Lab has signed a KRW 6.891B contract for CDMO long-acting injectable manufacturing facility, and pipeline trials are ongoing
Investment risks: reduced share liquidity and investor sentiment may weaken; potential need for additional fundraising
[AI Summary]The capital reduction approval is a necessary step for financial restructuring, but the 88.9% share decrease raises concerns about liquidity dilution and existing shareholder value. Short-term volatility is expected; future direction depends on CDMO business and pipeline milestones. Investors should monitor the post-reduction normalization roadmap.