TONGYANG Announces 2:1 Reverse Stock Split to Halve Outstanding Shares, Aiming for Optimal Share Count

Stock Merger Overview: TONGYANG Inc is merging common shares (214,244,064) and preferred shares (1,024,456) at a 2:1 ratio. Post-merger, outstanding common shares will be 107,122,032 and preferred shares 512,228, with par value changing from 500 won to 1,000 won. This is a stock consolidation without capital reduction.
Schedule: Shareholder meeting on June 22, 2026; new shares effective July 7; trading suspension from July 3 to July 16; new shares listing on July 20.
Purpose: The merger aims to maintain an appropriate number of outstanding shares, interpreted as a technical measure to boost share price and meet listing requirements.
Additional: The merger will proceed after the completion of a treasury share cancellation. Fractional shares (less than one share) will be paid in cash based on the closing price on the first listing day.
[AI Summary]TONGYANG's reverse split is a technical measure that reduces the share count proportionally without altering enterprise value, leading to an increase in per-share value. Since it is not a capital reduction, it does not signal fundamental weakness. However, it may be seen as an attempt to shed the low-priced stock image, and the ultimate impact on shareholder value depends on the scale of the preceding treasury share cancellation. Investors should monitor the cancellation progress.