KOSDAQ-listed Satoshi Holdings announced on March 3 that it will begin full-scale efforts to improve its share structure and stabilize its stock price through a reverse stock split.
Satoshi Holdings disclosed on February 27 that its board of directors had resolved to consolidate every five common shares with a par value of 100 won into one share with a par value of 500 won. Once this reverse stock split is completed, the total number of issued shares will decrease from 26,023,214 to 5,204,642 shares.
A company representative stated, "This measure is a strategic decision to increase the per-share value, shed the so-called 'penny stock' image, and minimize stock price volatility caused by an excessive number of shares in circulation."
The representative further explained, "When a stock has a low per-share price and a large number of shares outstanding, its price tends to fluctuate significantly even with small trading volumes. By adjusting these factors to appropriate levels, we aim to create a more stable investment environment."
This decision is a 'pure reverse stock split' that only adjusts the number of shares without reducing the company's capital, and is not related to a capital reduction. With the par value adjusted to 500 won, the company expects to receive a re-rating of its previously undervalued corporate value and to enhance accessibility for institutional and foreign investors.
Through this reverse split, Satoshi Holdings plans to streamline its share structure more efficiently and, by increasing market credibility, pursue mid- to long-term stock price stabilization.
A Satoshi Holdings representative emphasized, "This par value reverse split demonstrates our commitment to modernizing our share structure and enhancing shareholder value," adding, "We will build a stable trading environment and earn market trust based on our intrinsic corporate value."
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