Jeju Beer Completes Capital Reduction at Extraordinary General Meeting... "Accelerating Business Normalization"

Jeju Beer is accelerating its management normalization by passing a 5-for-1 reverse stock split agenda through an extraordinary general meeting of shareholders. Recently, Jeju Beer has been actively collaborating with companies such as Seolhwa Beer, the global No.1 beer, and AgeGF, the parent company of Olgot, the No.1 frozen gimbap manufacturer in the U.S.

On the 19th, Jeju Beer held an extraordinary general meeting of shareholders at its headquarters located in Hallim-eup, Jeju City, Jeju Province, where it proposed and passed a capital reduction agenda to consolidate 5 common shares into 1 common share.

Following the approval of the agenda, the number of Jeju Beer’s shares will decrease from the existing 59,433,025 shares to 11,866,606 shares, and the capital will be reduced from 29.71651 billion KRW to 5.9433 billion KRW. The base date for the reverse split is August 5, with trading suspension scheduled from August 2 to 26, and the new shares are expected to be listed on August 27.

A Jeju Beer official stated, “This reverse stock split decision was made to cover accumulated deficits since the management rights acquisition battle and to improve the financial structure, completely dispelling concerns about delisting due to capital erosion raised by some parties. Since the management change, we have been showing a different Jeju Beer by aggressively pursuing overseas expansion such as entering the Japanese local market, distributing Seolhwa Beer, the global No.1 beer, and acquiring shares in the global No.1 frozen gimbap company. Through this, we aim to become a global F&B company by normalizing management and diversifying our business.”

Meanwhile, Jeju Beer’s sales in the first quarter of this year amounted to 5.03 billion KRW, a 7.2% increase compared to the same period last year, and the operating loss during the same period was 1.06 billion KRW, reducing the deficit by 50% compared to the previous year. The company aims to turn profitable in the fourth quarter of this year through expanded overseas entry and cost control following the management change.