Chorokbaem Group to Propose Amendment Banning Mezzanine Investments Including CB at Next Month's General Meeting

On the 10th, Chorokbaem Group held an emergency press conference and announced a plan for business normalization. On the 12th, it was revealed through disclosures that Chorokbaem Media, Chorokbaem Company, Chorokbaem E&M, and The Medipharm will hold extraordinary general meetings of shareholders on the 23rd and 29th of next month to amend their articles of incorporation.

According to the disclosures announced by Chorokbaem Group affiliates on the 12th, all listed companies within Chorokbaem Group plan to propose amendments to their articles of incorporation to include a ban on future mezzanine product investments such as convertible bonds (CB), bonds with warrants (BW), and convertible preferred stocks (CPS).

Previously, at the emergency press conference, Chorokbaem Group stated that it would not proceed with mezzanine investments, which have been the most contentious issue, without shareholder approval. This amendment to the articles of incorporation demonstrates Chorokbaem Group’s firm determination and immediate action toward prompt business normalization.

At that time, the chairman of the Chorokbaem Group Management Committee said, “We will not proceed with mezzanine investments that could cause problems in the future, and in cases where it is absolutely necessary for management, we will implement them only after obtaining approval from shareholders at the general meeting.”

Starting with this amendment to the articles of incorporation, Chorokbaem Group plans to swiftly carry out the four improvement measures announced at that time, aiming for group management normalization.

Chorokbaem Group’s renewal plan includes ▲ the resignation of the largest shareholder, Chairman Won Young-sik ▲ improvement of governance at the group company level ▲ prohibition of mezzanine investments such as convertible bonds (CB) and bonds with warrants (BW) ▲ conducting business activities focused on the purpose of the articles of incorporation.

Meanwhile, Chorokbaem Group’s extraordinary general meetings of shareholders are scheduled to be held at 9:30 a.m. on August 23 (Chorokbaem Media, Chorokbaem Company, The Medipharm) and August 29 (Chorokbaem E&M).