Alpha AI Pursues 10:1 Stock Reverse Split and Expands into Blockchain Business to Enhance Corporate Value
Alpha AI is proposing a 10:1 stock reverse split at its extraordinary general meeting on June 30, 2026. The par value per common share will change from 500 KRW to 5,000 KRW, reducing total outstanding shares from 20,110,080 to 2,011,008. This is a par value consolidation with no change in capital, aimed at stabilizing the stock price and enhancing corporate value.
The agenda includes amendments to the articles of incorporation to add business purposes such as blockchain-based virtual asset issuance and distribution, digital asset brokerage, and token securities, laying the foundation for new business ventures.
The largest shareholder, AI Innovation Growth Equity, holds 14.93%. The proxy solicitation aims to secure the quorum for a smooth shareholder meeting.
Fractional shares resulting from the reverse split will be paid in cash based on the closing price on the last trading day. The trading suspension is scheduled from July 30 to August 20, 2026, with new shares expected to circulate on August 21, 2026.
[AI Summary]Alpha AI is reducing its outstanding shares through a reverse split to improve stock price stability and adding blockchain and digital asset business purposes to pursue new growth drivers. However, since it involves only charter amendments without actual capital raising or changes, the short-term impact on stock price is limited. Investors should monitor the specific execution plans and profitability of the new businesses.