RaonSecure, 5-to-1 Stock Consolidation..."Enhancing Corporate Value"

IT security and authentication platform company RaonSecure held a board meeting on the 14th and decided to consolidate every 5 common shares into 1 share. The purpose of this consolidation is to maintain an appropriate number of shares to stabilize the stock price and enhance corporate value.

Through this stock consolidation, RaonSecure's par value per share will increase from 500 KRW to 2,500 KRW, while the capital remains unchanged. Currently, RaonSecure has a total of 56,025,871 issued shares. After the consolidation, the number of shares will be reduced to 11,205,174. The final resolution on the stock consolidation will be made at the shareholders' meeting scheduled for the 31st of this month. The effective date of the new shares is April 15. The trading suspension period is from April 11 to May 2. The new shares are expected to be listed on May 7. Fractional shares less than one share resulting from the consolidation will be paid in cash based on the closing price of the most recent trading day before the new shares are listed.

RaonSecure recorded provisional consolidated sales of 62.492 billion KRW last year, a 20% increase compared to the previous year, achieving the highest performance since the company's establishment. Operating profit improved to 1.967 billion KRW, turning profitable. Balanced growth in services and platform sectors such as blockchain-based digital ID and white-hat consulting, as well as expansion of overseas national digital ID projects and Japan’s “subscription-based biometric authentication service” business, drove the performance growth.

In the blockchain-based digital ID business sector, RaonSecure plans to expand its business scope to various mobile certificates such as qualifications and medical certificates, alongside responding to the full-scale spread of mobile IDs. The solution business will strengthen authentication and access control based on a strategic platform optimized for the “Zero Trust Guideline 2.0” and will also introduce cloud-based SaaS services.

Additionally, building on the successful execution of digital ID projects in Indonesia and Costa Rica last year, RaonSecure plans to expand overseas national digital ID businesses in Latin America, Southeast Asia, Central Asia, and Europe this year. The “subscription-based biometric authentication service” currently operating in Japan will also be expanded to overseas countries such as the United States.

RaonSecure is accelerating efforts to promote future growth businesses. To proactively respond to cyberattacks using quantum computers expected to be introduced within a few years, the company is expanding the application of “Post-Quantum Cryptography (PQC)” to its solutions. It also plans to develop B2B businesses utilizing generative AI-based deepfake detection technology and advance AI-based tutoring and coaching technologies through Raon Metademy.

Lee Soon-hyung, CEO of RaonSecure, said, “This stock consolidation was decided as part of a shareholder-friendly policy to provide investors with a more stable investment environment by maintaining an appropriate number of circulating shares. We will gradually establish a foundation for corporate growth to strengthen stock price stability and increase corporate value.”