[Featured Stock] Jeju Maekju Plummets Ahead of April 30 Rights Offering... Date Changed for the 4th Time

The First Day of Trading Resumption After Free Capital Reduction

Jeju Beer is experiencing a sharp decline on the first trading day after a free capital reduction. This is interpreted as investors showing a 'sell' trend due to concerns about stock dilution ahead of the upcoming paid-in capital increase scheduled for the 30th. Since announcing the third-party allotment capital increase on the 3rd, Jeju Beer has already changed the payment date four times.

At 10:07 AM on the 27th, Jeju Beer was trading at 4,440 KRW, down 11.38% (570 KRW) from the previous trading day.

Jeju Beer is preparing for the payment of the third-party allotment paid-in capital increase on the 30th. It is interpreted that the stock is flooding the market due to concerns about dilution. On March 19th, along with a change in the largest shareholder, the company pursued a third-party allotment paid-in capital increase to raise 10 billion KRW for operating funds. The third-party allottee is GY Investment Association. The newly issued shares amount to 9,310,987 shares.

The initial payment date was May 30th, but the payment date has been continuously delayed. After announcing a postponement to July 30th, it was changed again to August 16th. However, the company recently announced that the payment date for the capital increase will be changed to the 30th, raising concerns about securing investment funds.

Meanwhile, Jeju Beer held an extraordinary general meeting of shareholders on the 19th of last month and resolved to reduce capital through a free capital reduction. This was to cover accumulated losses, resolve capital erosion, and improve the financial structure.

After the free capital reduction, the number of issued shares decreased from 59.43 million to 11.89 million, and the capital decreased from 29.7 billion KRW to 5.9 billion KRW. The reduction ratio was 80% for both major and minor shareholders. The capital reduction amount due to the reduction is converted into capital surplus.