Finger Story Corrects Rights Offering to 799,491 Shares at 3,940 KRW, Dilution Worsens to 22.8%
Finger Story corrected its initial June 22 capital increase decision after reconvening the board, revising both the number of new shares and the offering price.
The correction increases the new shares from 668,895 to 799,491 shares, a 19.5% rise, while lowering the offering price from 4,485 won to 3,940 won, a 12.2% drop.
Total proceeds edge up from about 3 billion won to 3.15 billion won, but dilution for existing shareholders worsens sharply from 19.07% to 22.78%.
All new shares are subject to a 1-year lock-up, but the largest shareholder and related parties receive the majority allotment, raising concerns over control consolidation.
A new individual investor Ha Seung-wan receives 38,071 shares.
[AI Summary]Finger Story's corrected disclosure increases the size of the capital raise and reduces the issue price, exacerbating dilution for existing shareholders. Despite the one-year lock-up preventing immediate overhang, the 22.8% dilution and the use of funds for working capital rather than growth investment likely weigh on the stock.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)