Union Korea Pharm Implements 3:1 Reverse Stock Split as Part of Rehabilitation Plan, Delays Listing Date, Existing Shareholders Face Dilution
Union Korea Pharm has decided a 3-for-1 reverse stock split following court approval of its rehabilitation plan under the Debtor Rehabilitation and Bankruptcy Act. The reduction rate is 66.67%, reducing outstanding shares to 19,854,006. This restructuring involves debt-to-equity conversion and a third-party capital increase, likely diluting existing shareholders.
The listing date for new shares is postponed from June 16 to June 23 due to practical delays at the securities depository. Further schedule changes are possible depending on court decisions and will be re-disclosed if changed.
The capital reduction aims to improve financial structure alongside conversion of rehabilitation security rights and claims; capital will decrease from approximately KRW 29.8 billion to KRW 9.9 billion. Fractional shares under one unit will be cancelled without compensation with court approval.
[AI Summary]Union Korea Pharm undergoes a comprehensive capital restructuring under its rehabilitation plan, including a 3:1 reverse stock split and debt-to-equity swap followed by a third-party rights offering. Existing shareholders face significant dilution as the share count is reduced and new shares are issued. The delayed listing date adds uncertainty, and investors should expect heightened short-term price volatility.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Capital Reduction)