Crovahightech Decides on Free Capital Reduction and Third-Party Allocation of New Shares

[Asia Economy Reporter Minji Lee] Clova Hightech announced on the 10th that it will proceed with a third-party allotment paid-in capital increase targeting Apilsolutec and G&B Loan Capital Co., Ltd. to raise 3.1637 billion KRW for debt repayment funds.

Previously, the company also announced that it will carry out a free reduction of capital for existing shares as of the previous day. It decided to consolidate 4,662,295 common shares with a face value of 500 KRW from 10 shares to 8 shares with a face value of 500 KRW. Fractional shares less than one share will be canceled free of charge with court approval. Accordingly, the capital before the reduction will decrease from 11.65 billion KRW to 9.3188525 billion KRW after the reduction.

The company explained, "The paid-in capital increase is to proceed with repayment through partial conversion of rehabilitation bonds into equity," adding, "We plan to consecutively carry out the reduction of existing shares and partial conversion of rehabilitation bondholders into equity, and the consolidated shares will be issued together with the new shares from the third-party allotment capital increase due to the equity conversion." Currently, Clova Hightech has been granted a financial restructuring period, and trading of its stock certificates is currently suspended.