BITMAX has decided a third-party allotment of 2,126,754 shares worth approximately 5.0 billion KRW to S Value Investment Association for financial structure improvement. The issue price of 2,351 KRW is a 10% discount from the reference price but a 26% premium to the current market price of 1,861 KRW. All new shares will be locked up for one year.
This capital increase dilutes existing shareholders by 19.9% based on 10,694,360 outstanding shares. The proceeds are earmarked for acquisition of securities of other corporations but the specific target is undecided, indicating low transparency. The counterparty S Value Investment Association has not disclosed its financial statements, creating counterparty risk.
[AI Summary]BITMAX's large-scale capital increase with 19.9% dilution significantly threatens existing shareholder value. The vague use of proceeds and lack of counterparty financial information heighten investment uncertainty. While the premium issue price and one-year lock-up provide some mitigation, the overall impact is negative.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)