Exem Decides to Cancel Treasury Shares Worth 1 Billion KRW

IT performance management specialist Exem announced on the 14th that it will cancel treasury shares worth 1 billion KRW. Earlier, Exem disclosed the results report following the completion of the acquisition of treasury shares worth 1 billion KRW, which was announced on December 10 last year.

Through a board resolution, Exem decided to cancel treasury shares worth approximately 1 billion KRW to stabilize the stock price and enhance shareholder value. The number of shares to be canceled is 501,123 common shares, accounting for about 0.7% of the total issued shares. The scheduled cancellation date is the 21st of this month.

The cancellation method is 'profit cancellation,' where treasury shares acquired within the scope of distributable profits are canceled by a board resolution in accordance with Article 343, Paragraph 1, proviso of the Commercial Act. Only the number of shares decreases, and there is no reduction in capital stock.

Generally, the cancellation of treasury shares by listed companies is the most preferred shareholder return method by most shareholders. Canceling treasury shares reduces the number of issued shares, increasing earnings per share (EPS). This can induce a rise in stock price, making treasury share cancellation, along with dividends, a representative shareholder return policy. Additionally, after canceling treasury shares, the existing shareholders' equity ratio increases, so there is no concern about dilution of shares.

Ko Pyung-seok, CEO of Exem, said, "Thanks to the support of our shareholders, we achieved record-high sales last year," and added, "Exem will actively implement various shareholder-friendly policies this year as well, so that we can share the fruits of growth with our shareholders."