Tera Science Decides on Massive Third-Party Allotment Rights Offering with 23.5% Dilution, Aiming to Raise Operating Funds Amid Delisting Risk
Situation: Tera Science shares have been suspended from trading since March 2024 due to listing eligibility review and audit opinion denial, facing potential delisting.
Cause: To secure 2.5 billion won in operating funds, the company decided to issue 25 million new shares at 100 won per share to Seojin Panji, an 84.7% discount to the last traded price of 654 won.
Risk and Impact: The issuance will cause a 23.5% dilution of existing shares. The largest shareholder will change from Wipleus Investment Union to Seojin Panji. New shares are subject to a 1-year lock-up but the massive dilution still threatens existing shareholder value.
Financial Information: Seojin Panji is a small unlisted company with 2024 assets of 8.09 billion won, sales of 0.41 billion won, and net income of 0.07 billion won.
Shareholder Returns: No treasury stock buyback or dividend plan is associated with this offering.
[AI Summary]Tera Science is conducting a highly dilutive third-party allotment rights offering at a deep discount to survive financial distress, but the funds are merely for operating expenses without growth potential. The counterparty's weak financials and the company's precarious listing status heighten investment risk.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)