[At a Crossroads: Listed Companies] ③ Glovon Changes Rights Offering Recipient to Owner... Concerns Over Sale Disruption

[Asia Economy Reporter Jang Hyowon] Globon, a KOSDAQ-listed company undergoing a management rights transfer, has changed the subscriber of a 1 billion KRW paid-in capital increase from the management rights transferee to Han Sangho, CEO of Globon. This has raised concerns about potential disruptions to the management rights transfer schedule.

According to the Financial Supervisory Service's electronic disclosure on the 17th, Globon changed the subscriber of the 1 billion KRW third-party allotment paid-in capital increase from Citadel Holdings to CEO Han on the 15th, which was initially decided on the 1st.

Citadel Holdings is one of the entities that signed the management rights transfer contract with CEO Han. On the 1st, CEO Han signed a contract to transfer 4 million shares he owns to Quantum Recycle Solution (1.5 million shares), Cruise Holdings (1.5 million shares), and Citadel Holdings (1 million shares).

The total transfer price was 20 billion KRW at 5,000 KRW per share. Considering the closing price of 2,520 KRW the day before the contract, this represents a management rights premium of over 100%. On the same day, Citadel Holdings also decided to participate in the 1 billion KRW third-party allotment paid-in capital increase.

At the time of the initial capital increase decision, the new share issuance price was 2,281 KRW. However, as Globon's stock price rose, the issuance price was changed to 2,704 KRW on the 3rd. Subsequently, on the payment date of the 15th, Citadel Holdings canceled its participation in the capital increase, citing the high per-share price.

For KOSDAQ-listed companies, if a capital increase is canceled after the announcement of the paid-in capital increase decision, penalty points may be imposed by the Korea Exchange. Accumulating 15 penalty points can lead to trading suspension and a substantive review of listing eligibility.

Accordingly, Globon changed the subscriber to CEO Han. From CEO Han's perspective, this was a profitable move. He received 2 billion KRW as a deposit and already transferred 400,000 shares at the time of the contract with Quantum Recycle Solution and others. By investing 1 billion KRW in this capital increase, he will receive 369,822 shares. In just a few days, he made a profit of 1 billion KRW with almost no change in the number of shares held.

In the market, doubts about the possibility of acquisition have arisen as the Globon acquirers showed signs of canceling the capital increase. Quantum Recycle Solution and others plan to acquire a 6 billion KRW paid-in capital increase and a 10 billion KRW convertible bond (CB) along with CEO Han's share acquisition. The acquisition entity is Quantum Investment No.1 Association, with Quantum Recycle Solution as the general partner (GP).

Quantum Recycle Solution was established in 2020 with a capital of 1 billion KRW. It recorded zero sales and a net loss of 100 million KRW last year, resulting in a capital deficit. The largest shareholder is Director Tae Wonjin. At the end of last year, Director Tae attempted to invest in DigiCap's paid-in capital increase and bonds with warrants (BW) through WJ Trading but canceled. In April, he also attempted to acquire 12 billion KRW worth of CBs from Audin Futures but failed.

Cruise Holdings and Citadel Holdings are corporations with capital of 85 million KRW and 50 million KRW, respectively, both recording zero sales last year. The CEO of Citadel Holdings is Lim Kwangdeok. Lim briefly served as CEO of Jungang Ocean (now Medicox) in 2019. He also established a relationship by investing in CBs of Koson, which is currently under trading suspension.

A Globon official stated, "Since canceling the capital increase carries risks such as penalty points, the CEO has taken responsibility. The management rights transfer schedule will proceed without disruption."

Meanwhile, the intermediate payment of 8 billion KRW for CEO Han's share acquisition is scheduled for the 30th, and the final payment of 10 billion KRW is planned for December 8. The payment date for the 6 billion KRW paid-in capital increase is December 7, and the 10 billion KRW CB payment date is scheduled for February 17, 2023.