Union Korea Pharm Decides on 60 Million Share Third-Party Allotment to Bukwang Pharm for Rehabilitation, Massive Dilution and Change of Largest Shareholder Expected
Union Korea Pharm has decided on a third-party allotment of 60 million shares to Bukwang Pharm in accordance with its approved rehabilitation plan. The issue price is 500 KRW per share, an 81.6% discount from the current market price of 2,725 KRW. The funds will be used to repay rehabilitation claims and improve financial structure.
This capital increase represents a 758% dilution relative to the current 7.91 million outstanding shares, severely harming existing shareholder value. The listing date for the new shares has been corrected to July 15, 2026.
After the allotment, the largest shareholder will change to Bukwang Pharm, a listed company with total assets of 468 billion KRW and revenue of 167.3 billion KRW, audited with an unqualified opinion.
[AI Summary]Union Korea Pharm's massive third-party allotment to Bukwang Pharm under the rehabilitation plan results in extreme dilution of existing shareholders. The deep discount and debt repayment purpose offer limited growth prospects, exerting strong downward pressure on the stock price. Investors should monitor the new majority shareholder's ability to normalize operations.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)