MNC Solution: "Three-Year Sale Restriction for Largest Shareholder Remains... No Shares to Be Sold Despite Lock-Up Expiration"

MNC Solution, a motion & control defense component company led by CEO Kim Byungkeun, announced its official position on its website on December 4, stating that "there is absolutely no possibility of shares being released to the market" in relation to the expiration of the lock-up period for shares held by the largest shareholder and the employee stock ownership association.

According to the shareholder letter posted on MNC Solution's website, 6,753,900 shares held by its largest shareholder, Socius Well2C Investment No.2 Corporate Financial Stability Co., Ltd., and 91,392 shares held by the employee stock ownership association have been subject to a mandatory one-year lock-up period since the listing date (December 16, 2024). This lock-up period is scheduled to end on December 15, 2025.

MNC Solution posted the shareholder letter to provide accurate information, as some recent media reports about the lock-up expiration could raise concerns in the market. The company explained that the lock-up expiration is merely an administrative deadline, and the actual market sale restrictions on the largest shareholder remain in place. In other words, even after the lock-up period ends, there is a structural barrier preventing the largest shareholder's shares from being released to the market.

During the IPO process, the largest shareholder submitted a "commitment letter for management control stability" to the Korea Exchange, pledging not to sell its shares on the market for three years after listing (from December 16, 2024, to December 15, 2027). Under this commitment, the sale of any portion of shares on the market is restricted, except in the case of a bulk sale through a transfer of management control (M&A).

Kim Byungkeun, CEO of MNC Solution, emphasized, "This lock-up expiration is simply a procedural deadline and does not mean the end of market sale restrictions," adding, "The same restrictions will remain in place until December 15, 2027, so there is absolutely no possibility of shares being released to the market."

He further stated, "We aim to provide clear information so that shareholders do not feel unnecessary anxiety," and added, "We will continue to strengthen responsible management to enhance shareholder value and drive corporate growth."

Meanwhile, on December 1, MNC Solution announced via a disclosure that it had signed supply contracts for Poland's K2 tanks and K9 self-propelled howitzers. With these contracts, the cumulative order volume for K2 and K9 projects now amounts to approximately 91.4 billion KRW.