YFarm announced on the 20th that it has decided to raise approximately 16.5 billion KRW in operating funds through a paid-in capital increase by issuing Redeemable Convertible Preferred Shares (RCPS).
The issuance will be through a third-party allotment, with the new shares priced at 2,860 KRW per share. It is a company-favorable contract without a refixing clause, and the payment date is set for the 31st. The purpose of the issuance is to refinance debt and raise operating funds.
RCPS are preferred shares granted with redemption and conversion rights. Issuing RCPS is a way to expand capital while minimizing dilution of existing shareholders' equity. Until now, RCPS recognized as capital were mostly issued through investments by major shareholders or related parties, private equity (PE) funds, and new technology investment associations.
According to Samsung Securities, the lead manager, YFarm is the first KOSDAQ-listed company to issue RCPS to institutional investors such as asset management companies within the capital market regulatory framework.
YFarm develops, manufactures, and sells RF Front-end Modules (RFFE), including Power Amplifier Modules (PAM) used in mobile communication terminals. As part of its business diversification, it has also entered the smart car sector, securing major manufacturers as clients and establishing a leading position.
A YFarm representative explained, “Since the redemption rights belong to the company, it is recognized as capital in accounting terms. This decision was made for future growth, increasing capital without damaging the value of current shareholders.”
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