Organic Tea Cosmetics Correction Report for Rights Offering, Clerical Adjustment to Allottee Shares Without Changing Terms
Organic Tea Cosmetics submitted a correction report to its previously filed rights offering decision on June 30, 2026. The correction addresses a clerical error in the share allocation between two third-party allottees YING CHENGZHI and ZENG ZHAOJIE, whose allocated shares were swapped from 1.5 million and 1.8 million to 1.8 million and 1.5 million respectively; the total number of new shares and proceeds remain unchanged.
This amendment is solely an administrative fix of a typographical error. All key terms of the rights offering, including the issuance of 12.8 million new shares representing 164% dilution of pre-offering outstanding shares of 7.78 million, an issue price of KRW 4,550 per share, and total proceeds of KRW 58.24 billion dedicated to operating funding for footwear marketing and tea distribution, stay intact.
The allottees consist of the largest shareholder SUN YANE, seven other individuals, and one corporate entity ZHUOHUA INVESTMENT HOLDINGS PTE. LTD., all subject to a one-year lock-up. However, the predominantly individual investor base and lack of strategic partnerships continue to pose governance risks. No shareholder return measures such as dividend policy or share buybacks have been disclosed.
Because this correction does not alter the economic substance of the offering, the severe dilution and financial risks identified in the original filing remain fully relevant for investors.
[AI Summary]Organic Tea Cosmetics' correction to its rights offering disclosure is limited to rectifying a clerical error in share allocation between two allottees, leaving the core terms of the offering unchanged. The massive 164% dilution from issuing 12.8 million new shares and the use of proceeds for non-core footwear marketing still threaten shareholder value, while the low credibility of individual allottees adds to the negative outlook.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)
Company: Organic Tea Cosmetics Holdings (900300)
Submission: Organic Tea Cosmetics Holdings Company Limited