Alpha AI Decides 10-to-1 Reverse Stock Split to Stabilize Stock Price and Enhance Corporate Value
Alpha AI has decided on a 10-to-1 reverse stock split, merging shares from 500 KRW to 5,000 KRW per share. The total outstanding shares will decrease from 20,110,080 to 2,011,008 while capital remains unchanged.
The purpose is to stabilize the stock price and enhance corporate value by maintaining an appropriate number of outstanding shares. The board resolution was made on June 10, 2026, with an extraordinary general meeting scheduled for June 30, 2026, and the new shares to be listed on August 21, 2026.
Fractional shares resulting from the merger will be paid in cash based on the closing price on the last trading day. The schedule may change subject to relevant laws and regulatory approvals.
[AI Summary]The reverse stock split of Alpha AI is a neutral event with no direct dilution or capital reduction for existing shareholders. However, the reverse split at a current price of 520 KRW reflects a low stock price and may have limited short-term impact. The move is defensive in nature and requires future earnings improvement for meaningful shareholder value creation.