Shares of KOSDAQ-listed CammSys fell in early trading on the 9th. Investor sentiment appeared to weaken on news that the company will carry out a large paid-in capital increase and a capital reduction without compensation due to deteriorating finances.
As of 9:49 a.m. on the 9th, CammSys was trading at 506 won, down 216 won (29.92%) from the previous session. It went straight to the lower limit (the bottom of the daily price limit band) right after the open. This is also the lowest price in a year.
CammSys, a camera module solutions specialist, said after the close on the 8th that it will carry out a paid-in capital increase worth 30 billion won. It will be conducted through a rights offering followed by a public offering of forfeited shares, with 25 billion won to be used for operating funds and 5 billion won for debt repayment.
The planned issue price is 2,075 won, to be finalized on Apr. 3 next year. Subscriptions for existing shareholders are scheduled for two days from Apr. 8 to 9 next year.
It also said it will implement a 5-to-1 capital reduction without compensation to improve its financial structure by offsetting accumulated losses. A total of 73,824,118 shares are subject to the reduction, and the reduction ratio is 80%. The capital will decrease from 36.91206 billion won before the reduction to 7.38241 billion won after the reduction.
The capital reduction without compensation will be finalized after a shareholders meeting on Jan. 22 next year, and the record date for the reduction is Feb. 5.