Tera Science Announces 2.5 Billion Won Rights Offering at 100 Won Per Share, Diluting Existing Shareholders by 23.5%
Tera Science has decided to issue 25 million new shares at 100 won each to a third party, raising 2.5 billion won for working capital. This price represents an 84.71% discount to the last traded price of 654 won, leading to severe dilution for existing shareholders.
The total outstanding shares will increase to 131.38 million, and the largest shareholder will change from Wiplus Investment Association to Seojin Panji Co., Ltd. Although the new shares are subject to a 1-year lock-up, the massive discount and control change pose risks.
The company's stock has been suspended since March 2024 due to a listing review and audit opinion denial, putting it at risk of delisting. The funds are intended for financial restructuring and operational normalization, but no specific ROI plan is provided, challenging investor confidence.
[AI Summary]This heavily discounted capital increase dilutes equity substantially, and ongoing trading suspension and delisting risk cloud the stock's outlook. Short-term shareholder value erosion is inevitable, and long-term recovery hinges on successful business normalization.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)