[Seoul=NewsDesk] Hands Corporation announced in a regulatory filing on the 9th that it has decided on a third-party allotment capital increase totaling approximately 17.12 billion won in order to improve and bolster its financial structure.

This capital increase will be executed through a debt-to-equity swap (debt offset) via in-kind investment. The new shares will be issued at 3,492 won per share, with a total of 4,903,633 new common shares to be issued. The raised funds will be used entirely to improve the financial structure through the debt-to-equity swap. The scale of this capital increase (approximately 17.1 billion won) is about 2.22% of the company's total assets based on the most recent fiscal year.

The recipients of this third-party allotment are the company's creditors, with the specific allotment details as follows:

• Largest shareholder Seung Hyun-chang: 290,869 shares • Affiliated company Donghwa Sanghyup Co., Ltd.: 3,158,418 shares • Related party (blood relative within 6th degree of kinship) Cha Hee-sun: 1,454,346 shares

The new share payment date is June 17, 2026, and the new shares are scheduled to be listed on June 30 of the same year. The newly issued shares will be subject to a one-year lock-up period in full from the date of share certificate delivery.

The company explained that while this capital increase involves in-kind investment, it does not constitute a backdoor listing and is not subject to reporting to the Fair Trade Commission. Additionally, as it is subject to a one-year resale restriction, the submission of a securities registration statement is exempted.

Meanwhile, the new share issue price (3,492 won) was calculated by an external evaluation agency applying the supplementary valuation method under the Inheritance Tax and Gift Tax Act. This is approximately 191.24% higher compared to the final closing price of 1,199 won prior to the trading suspension.