ORIENTBIO 50% Capital Reduction and Transfer of Capital Surplus to Retained Earnings to Improve Financial Structure and Enhance Shareholder Value

ORIENTBIO will seek approval for a 50% capital reduction at an EGM on August 3, 2026, consolidating two common shares into one, reducing outstanding shares from 59,291,502 to 29,645,751.
Concurrently, 3 billion KRW of capital surplus from share premium will be transferred to retained earnings to improve financial structure and cover accumulated deficits.
The capital reduction is a book entry with no cash inflow; shareholders' ownership percentage remains unchanged as share count halves but per-share value theoretically doubles, causing no dilution.
[AI Summary]This capital reduction and surplus transfer is a defensive move to strengthen financial stability, focusing on balance sheet improvement rather than growth, limiting long-term stock price momentum.