EV Advanced Materials Adjusts Rights Offering to 28.4 Billion Won: "A Decision to Protect Shareholder Value"

EV Advanced Materials announced on October 1 that it would significantly revise its rights offering plan, reducing the issuance amount from the previously planned 41.4 billion won to 28.4 billion won. The number of shares to be issued will also be sharply reduced from 41.5 million to 27 million, and the planned issue price will be adjusted from 998 won to 1,053 won per share.

CEO Choi Dongrak stated, "With regard to the ongoing rights offering, the Financial Supervisory Service has repeatedly requested corrections regarding the use of funds, which has caused some delays in the reporting process. However, this is a necessary administrative procedure to strengthen disclosure and procedural transparency under the Capital Markets Act. If the rights offering is executed, the company will place the proceeds in escrow with a law firm and execute the funds transparently in accordance with the purposes stated in the filing, disclosing details of fund usage in the future."

Initially, EV Advanced Materials planned to raise a total of 41.4 billion won: 17.5 billion won for facility investment, 10 billion won for acquiring securities of other companies, and 13.9 billion won for working capital. However, in the revised plan, the item for acquiring securities of other companies has been removed, and working capital has been reduced by 3 billion won to 10.9 billion won, resulting in a significant reduction of the total issuance amount to 28.4 billion won.

This rights offering will be conducted through a shareholder allocation followed by a public offering of forfeited shares, with SK Securities acting as the underwriter for the entire amount.

The funds raised will be primarily allocated to facility investments for the expansion of the second plant in Vietnam and to increase production capacity, with a portion to be used as working capital.

A representative from EV Advanced Materials commented that, amid intensifying international competition, "With rising demand for electric vehicles and autonomous vehicles, the ability to produce large-area FPCBs, beyond simple small circuit boards, is directly linked to the company's corporate value. Missing the timing for facility investment could mean the company will not survive against latecomer competitors. Our executives and employees are making every effort with a sense of urgency, and it is important to provide a balanced perspective on the company's industrial ecosystem transformation and mid- to long-term growth strategy."