Coreline Soft, an artificial intelligence (AI)-based medical imaging software corporation, is trading weakly in early sessions on the 24th. It is interpreted that a surge in selling volume followed the announcement of a 31.1 billion won shareholder allocation rights offering last Friday.
As of 9:32 a.m. on this day, Coreline Soft is trading at 6,360 won, down 2,050 won (24.38%) from the previous trading day.
Coreline Soft, listed on the KOSDAQ, disclosed its plan for a shareholder allocation rights offering after the market closed on the 21st, the previous trading day. The company will issue 5.1 million new shares, allocate them to existing shareholders (current shareholders), and raise 31.1 billion won through a public offering for general investors if there are any unallocated shares. All funds raised through the paid-in capital increase will be used for operating expenses.
The expected issue price for new shares is 6,100 won, which is a 27% discount compared to the closing price on the 21st (8,410 won). The record date for new share allocation is the 23rd, and the final issuing price will be determined based on the stock price and transaction volume until May 29 of this year, after which existing shareholders and the employee stock ownership association will undergo the subscription process before the new shares are listed on June 26.
It appears that investor sentiment has cooled due to the decision for this large-scale paid-in capital increase, causing the stock price to drop significantly. Coreline Soft, which entered the KOSDAQ market in September 2023, has not exceeded its initial public offering price (46,700 won) even once since its first day of trading.