Union Korea Pharm Decides 66.67% Capital Reduction and Corrects Listing Date to July 15 for Financial Restructuring
Union Korea Pharm has decided a capital reduction at a ratio of 66.67%, merging 3 common shares into 1 common share, as part of the court-approved rehabilitation plan under the Debtor Rehabilitation and Bankruptcy Act. The total shares will decrease from 59,573,136 to 19,854,006, and capital stock will reduce from approximately 29.8 billion KRW to 9.9 billion KRW.
The record date for the reduction is May 27, 2026, and the new share listing date has been corrected from June 23 to July 15, 2026, due to practical delays at the securities depository. Fractional shares resulting from the merger will be cancelled without compensation by the trustee with court approval.
This capital reduction is aimed at improving the financial structure under the rehabilitation plan and covers both existing shares and new shares issued via debt-to-equity conversion. A third-party allotment will follow sequentially.
[AI Summary]Union Korea Pharm's 66.67% capital reduction is a defensive measure to execute the rehabilitation plan, significantly reducing share count and capital. However, subsequent debt-to-equity conversion and new issuance may dilute existing shareholders. The cancellation of fractional shares is mildly positive for minority shareholders, but governance and financial risks remain subject to monitoring.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Capital Reduction)