Playgram Secures 90 Billion Won in Cash Under New Ownership... Launches NFT and Social Casino Business

[Asia Economy Reporter Jang Hyowon] Last month, Playgram welcomed a new owner by appointing Kim Jaewook as the new CEO. At the same time, as the process of changing management rights proceeded, it is expected that the company will accumulate over 90 billion KRW in cash. With a well-stocked treasury, the company is likely to actively pursue the newly added NFT and social casino businesses in the articles of incorporation, which were approved at the recent extraordinary general meeting of shareholders.

The company announced on the 29th of last month that Kim Seonggon resigned as CEO and Kim Jaewook was appointed as the new CEO. Kim Jaewook previously served as CEO of Artist Company, the agency representing famous actors such as Lee Jungjae and Jung Woosung, as well as CEO of Bithumb Korea. In 2017, he utilized the 'Bitgalaxia No.1 Investment Association (hereafter Bitgalaxia No.1)' to acquire KOSDAQ-listed company Vidente, followed by Bucket Studio and Inbiogen.

The newly formed management team includes CEO Kim, as well as internal directors Lee Jeongseung and Moon Changgyu, who worked closely with him at Vidente, and outside director Son Jungseo. Playgram plans to change its corporate name to the recently renamed NK Trading and pursue new businesses accordingly.

Through the change in management rights, the company is expected to accumulate over 90 billion KRW in cash. This funding will be secured through capital increases, convertible bond (CB) issuance, and disposal of subsidiary shares, excluding the sale of existing shares related to management rights. Playgram, which had no clear revenue sources other than its enterprise purchasing agency (MRO) business, is expected to aggressively expand its NFT and social casino businesses using the raised funds under the new CEO Kim Jaewook.

Playgram has been operating at a loss for over five years since 2016 through the first half of this year. However, as a listed company on the KOSPI market with no concerns such as being designated a management stock, it is expected to have high utility. Additionally, as of the first half of this year (separate basis), the company’s cash equivalents reached 24.5 billion KRW and its debt ratio was only 9.8%, indicating that financial restructuring has been completed, which is considered an optimal condition for entering new businesses.