Dragonfly Decides on Third-Party Allocation Paid-in Capital Increase Worth 7.5 Billion Won

[Asia Economy Reporter Jang Hyowon] First-generation game developer Dragonfly announced on the 8th that it has decided to conduct a paid-in capital increase to raise approximately 7.5 billion KRW in operating funds.

This paid-in capital increase will be carried out by third-party allotment of 10,067,114 common shares at a new share issuance price of 745 KRW. The payment date is scheduled for March 24, and the new shares are expected to be listed on April 10, with a one-year lock-up period.

The third-party allotment recipient is City Labs Co., Ltd., which will raise 6 billion KRW for acquiring securities of other companies and 1.5 billion KRW for operating funds, thereby holding a 14.87% stake in Dragonfly. Together with the newly changed largest shareholder, they plan to accelerate management normalization.

A Dragonfly representative explained, “This third-party allotment paid-in capital increase has resolved the existing major shareholder risk,” adding, “The meeting of the two companies, which share the commonality of operating in the game business, is expected to bring positive business value and various synergies along with financial structure improvement.”

Meanwhile, Dragonfly, the developer of the FPS game ‘Special Force,’ is preparing to release a new title in the first half of the year and is accelerating preparations for exploratory clinical trials of the game-type digital therapeutic ‘Guardians DTx (tentative name),’ which was recognized as a medical device by the Ministry of Food and Drug Safety (MFDS) last year.