Bitsrosis, Approval of Rehabilitation Plan and Implementation of Capital Reduction Without Compensation

[Asia Economy Reporter Minji Lee] Bitsrosis announced on the 6th that the rehabilitation plan submitted to the Seoul Rehabilitation Court on the 29th of last month was approved at the creditors' meeting.

Accordingly, to improve its financial structure, the company decided to execute a free capital reduction by consolidating every 2 shares of common stock with a face value of 500 KRW issued before the approval of the rehabilitation plan into 1 share. After the capital reduction, the number of shares will decrease to 24,366,962, and the capital will be reduced from 26.1 billion KRW to 12.1 billion KRW. The 3,550,000 common shares held by the largest shareholder, Bitsro G.H., will be canceled without compensation. The record date for the capital reduction is the 12th of this month.

Subsequently, Bitsrosis plans to issue 165,884,558 shares through a third-party allotment paid-in capital increase to convert rehabilitation bonds into equity. The new shares are scheduled to be listed on the 18th of next month.

Additionally, all remaining shares, including the consolidated existing shares and the new shares converted from rehabilitation bonds, will undergo another consolidation by merging every 35 shares of common stock with a face value of 500 KRW into 1 share. As a result, the number of shares will decrease from 19,025,000 to 5,300,000, and the capital will be reduced from 95.1 billion KRW to 2.6 billion KRW. The record date for this capital reduction is the 28th of this month.

Meanwhile, the company announced that outside director Ahn Cheol-yong was dismissed on the same day. The company explained, "The outside director was dismissed following the approval of the rehabilitation plan on the 29th of last month."