SDN Announces 1:10 Reverse Stock Split to Stabilize Share Price Following Treasury Stock Cancellation
SDN has decided on a 1:10 reverse stock split, merging shares with a par value from 500 KRW to 5,000 KRW. The purpose is to stabilize the stock price and enhance corporate value without reducing capital.
Prior to the reverse split, SDN cancelled approximately 2 million treasury shares, about 3.08% of total outstanding shares, reducing the count from 64,944,350 to 62,944,350. This action positively impacts existing shareholder value.
Post-merger, total outstanding shares will be reduced to approximately 6.29 million shares. Fractional shares from the merge will be paid in cash based on the closing price on the listing day. No dilution is involved, and the split may improve stock price liquidity.
[AI Summary]SDN's reverse stock split is a neutral event aimed at stabilizing share price through share count reduction, with no capital decrease. The pre-cancellation of treasury shares adds positive value. No dilution risk is present. However, the schedule may change subject to shareholder meeting approval.