NewkidsOn Approves Merger with KB No.28 SPAC... "KOSDAQ Listing in July"

NewkidsOn, a company specializing in e-commerce for children's fashion, and KB No.28 SPAC announced on May 22 that they each held an extraordinary general meeting of shareholders and approved the proposed merger between the two companies.

In this merger, which will be conducted through the absorption of the SPAC, NewkidsOn will be the surviving company, and KB No.28 SPAC will be dissolved. The merger ratio between the two companies is 1 to 0.1832341, with the merger prices set at 10,915 won and 2,000 won, respectively. After the merger, the total number of issued shares will be 7,997,049, and the expected market capitalization will be approximately 87.3 billion won. The merger date is scheduled for June 24, with the merged entity expected to be listed on July 11.

Joo Chunseop, CEO of NewkidsOn, stated, "This merger marks a strategic turning point for us to become a global company specializing in children's products," adding, "In addition to our existing children's fashion business, we will pursue diversification into cosmetics and fabric-based infant products. Starting with the transition of our own shopping mall, Newkiki, to an overseas platform, we will also work to increase the proportion of global sales."

Established in 2013, NewkidsOn is an e-commerce company that sells high-quality children's fashion products at reasonable prices. Targeting children aged 0 to 15, the company owns 10 fashion brands, including JELISPOON, milddkmile, and mollimelli. It has also enhanced its market competitiveness through collaborative products with global IPs such as Carebears, Disney, Esther bunny, LINE FRIENDS, and Sanrio.

The company expanded its business scope in 2021 by launching the organic vegan cosmetics brand ORGABON through its subsidiary, Ecoderma Lab. After launching skincare products, it expanded its product lineup to include sun care, family care, and bottom cleansers. Within three years of the brand's launch, it achieved sales of 2.47 billion won and operating profit of 221 million won last year, successfully turning a profit. Including the performance of ORGABON, NewkidsOn recorded consolidated sales of 50.4 billion won and operating profit of 4.5 billion won last year.

Through this merger, NewkidsOn plans to invest the 11.5 billion won in funds raised into expanding existing businesses, diversifying operations, and accelerating overseas expansion. The company is preparing to launch a new baby and toddler (0-8 years old) fashion brand, Estherbunny Little, in the second half of this year. Starting next year, it also plans to sequentially release fabric-based infant products, including anti-reflux cushions, nap blankets, and baby carriers. In addition, the company intends to convert its integrated brand mall, Newkiki, into an overseas platform to expand global sales, and will invest in building a new logistics center and strengthening overseas marketing to handle increased volume.