[Stock in Focus] Hyper Corporation Surges on Acquisition by Virtual Asset Firm

As of 9:30 a.m. on July 1, the share price of Hyper Corporation on the KOSDAQ market was trading at 6,090 won, up 29.99% from the previous day's closing price. This appears to be due to an announcement that an overseas virtual asset investment firm will acquire management control of the company.

On June 27, Hyper Corporation announced that an acquisition consortium, which includes a Singapore-based investment firm, will acquire management control through a third-party allotment capital increase. The company also disclosed plans to issue convertible bonds (CB) to financial investors (FI). The funds to be raised through the merger and acquisition (M&A) process alone amount to 77 billion won.

The third-party allotment capital increase is valued at 37 billion won. The number of new shares to be issued is 14,515,492, which exceeds the current total number of outstanding shares (13,335,216). The main entity of the acquisition consortium is Singapore-based special purpose company (SPC) Fanatic Strategic Holdings, which is reportedly established by the founder of a cryptocurrency investment management firm. In addition, two funds managed by the UK-based venture capital (VC) Kingsway Capital, which specializes in investments in the virtual asset sector, a fund created by the US-based Bitcoin investment firm UTXO Management, and Woori Technology Investment, a KOSDAQ-listed venture capital firm, will also participate.

After the transaction is completed, Fanatic Strategic Holdings will hold 5,786,582 shares, which is approximately 20,000 more shares than the current largest shareholder FSN, which holds 5,763,588 shares. Fanatic Strategic Holdings will also acquire half, or 20 billion won, of the total 40 billion won CB issuance through the SPC.