Deep Commerce Decides on Third-Party Rights Offering for 45.2 Billion Won Operating Fund, Massive 200% Dilution Concern

Deep Commerce decided on a third-party rights offering on July 21, 2026 to raise 45.17 billion KRW for operating funds.
The company will issue 36,874,260 new shares at 1,225 KRW per share, representing a 200% dilution relative to pre-issue shares of 18,437,131.
Payment date is August 31, 2026, after a 5:1 stock split effective August 28, 2026. After the split and capital increase, total shares outstanding will be 7,374,852.
All new shares are subject to a 1-year lock-up. The allotment targets are eight individuals including Ding Shaoying.
The proceeds will be used for R&D and marketing expenses.
[AI Summary]This rights offering provides operating funds but imposes severe dilution of 200% on existing shareholders, significantly impacting share value. The 1-year lock-up mitigates immediate selling pressure but does not eliminate long-term dilution. Investors should monitor downside risk on the stock price.