Davolink Largest Shareholder Terra Science Sees 3.1 Million Shares Pledge Executed and Small Buyback, Ownership Drops to 10.45% Deepening Governance Instability
Davolink disclosed an amendment to its stock pledge contract involving a change in the largest shareholder on July 2 2026, reporting an additional execution of 3.115 million pledged shares worth approximately 2.65 billion won out of the previous 8.14 million pledged shares.
This pledge execution reduced Terra Science's holdings to 5.44 million shares with a 10.45% stake, and full execution of all pledges would leave only 0.79% ownership, making a change in the largest shareholder inevitable.
On the same day, Terra Science bought back 358,552 shares worth 300 million won in the open market, but this is insignificant relative to the total pledged amount of 5.03 million shares valued at 6 billion won.
Terra Science is undergoing rehabilitation proceedings with ongoing legal disputes over illegal pledges and its 2023 audit opinion was denied, indicating low financial credibility and high governance risk.
The company has not disclosed any shareholder return policies such as treasury stock buybacks or cancellations, and financial soundness indicators like BIS ratio or NPL are not applicable.
[AI Summary]The largest shareholder's continuous pledge executions realize dilution risk, and this amendment confirms governance instability, negatively impacting the stock price outlook. With legal disputes and financial opacity undermining investor confidence, and potential further pledge executions, downside pressure on the stock is likely to persist.
KOSDAQ Filing Information
[Correction of Description] Execution of Stock Pledge Agreement Involving Change of Largest Shareholder