Green Resources announced that its subsidiary, CEK, has decided on a third-party allotment capital increase worth approximately KRW 10 billion.

CEK, an unlisted company that processes ceramic precision components for semiconductors and displays, will issue 5,017 redeemable convertible preference shares (RCPS) at KRW 1,993,461 per share. This will raise a total of KRW 10.0019 billion, an amount equivalent to 14.93% of Green Resources' consolidated equity capital of KRW 6.6991 billion.

The raised funds will be used entirely for facility investment. The payment for the new shares is scheduled to be completed by July 31, 2026, and the funds will be deployed for facility investments between 2026 and 2027.

The recipient of this third-party allotment capital increase is QD Semiconductor No. 10 Private Investment Association. Green Resources explained that the investor was selected after a comprehensive review of the purpose of the business, the feasibility of fundraising, payment capacity, and timing.

Currently, Green Resources holds a 76.08% stake in CEK. This investment contract includes a clause requiring the company to pursue an initial public offering (IPO) within three years after the closing of the transaction, as well as a clause for adjusting the conversion price depending on whether certain conditions are met.

Meanwhile, concurrently with the payment for the new shares, a pledge for the benefit of the third-party allotment recipient will be established on the 76.08% stake in CEK held by Green Resources. The company plans to provide further details through a separate disclosure on the 'Decision to Provide Collateral to a Third Party' at a later date.