KS Industry announced that it has decided on a third-party placement capital increase worth approximately 6 billion won to secure operating funds and debt repayment funds.

4,885,993 New Common Shares to Be Issued at 1,228 Won Per Share

Through this capital increase, 4,885,993 common shares will be newly issued. The new share issue price is 1,228 won per share, a 4.12% discount from the reference share price of 1,281 won. Prior to the capital increase, the total number of issued shares consists of 9,910,487 common shares and 182,815 other shares.

Use of Funds: 4.5 Billion Won for Operations, 1.5 Billion Won for Debt Repayment

Of the funds raised, 4,499,994,004 won will be used as operating funds and 1.5 billion won for debt repayment. The debt repayment funds will be used to acquire, before maturity, the 15th series of convertible bonds raised from Jo Seong-hyun. The convertible bonds have a principal of 1.5 billion won, a maturity date of November 27, 2027, and an interest rate of 1.67%. The company explained that the purpose of the capital increase is to resolve liquidity shortages and normalize management through improvement of its financial structure.

All Shares Allocated to Sangsaeng No. 1 Partnership… Largest Shareholder Change Expected

The third-party placement recipient is Sangsaeng No. 1 Partnership, which will be allocated all 4,885,993 new shares issued. The company stated that the board of directors decided on the allotment recipient after considering the investor's intentions, payment capacity, and timing in order to achieve management objectives.

Once payment is made, KS Industry's largest shareholder is expected to change from KSI No. 1 Growth Investment to Sangsaeng No. 1 Partnership. Sangsaeng No. 1 Partnership, established in 2026, has two investors, with Park Chan holding a 50.1% stake and Kang Jung-hoon holding 49.9%.

Payment and Subscription on October 1, New Shares Listed on October 20… One-Year Mandatory Lock-Up

The payment and subscription date is October 1, and the new shares are scheduled to be listed on October 20. All new shares will be subject to a mandatory one-year lock-up. The company added that the related schedule may change during consultations with relevant institutions.