KR MOTORS Passes Special Resolution for Stock Consolidation, Reducing Outstanding Shares by 80% to Stabilize Stock Price

KR MOTORS passed a special resolution at its extraordinary general meeting on June 19, 2026 to consolidate its common shares at a 5:1 ratio. With 63.2% of total voting shares present, the resolution received 100% approval, along with a related amendment to the articles of incorporation.
The consolidation will reduce outstanding shares from 86,375,184 to 17,275,036, an 80% decrease, theoretically raising the stock price to approximately 1,670 KRW. This action is a technical measure to stabilize the stock price without altering capital, but it does not reflect any fundamental improvement in corporate value.
Separately, there are potential dilution risks from multiple convertible bonds issued over the past year, and the company's 60.9 billion KRW treasury stock acquisition trust contract with KB Securities, signed in February 2026, is 50.25% complete with 207,900 shares acquired but no plans for cancellation or additional buyback.
[AI Summary]This consolidation is a technical step to support the stock price in the short term, but the overhang from convertible bonds and persistent operating losses may limit upside momentum. Investors should monitor post-consolidation liquidity changes and future financing plans.