KOSDAQ-listed Openedges Technology decided on a paid-in capital increase to raise 20 billion won in operating funds. The one stepping in to inject funds into Openedges Technology is Atinum Investment, known as the "legendary venture capital (VC)," and Atinum agreed to acquire the company's convertible preferred shares (CPS).
Atinum, which gained fame for its early investment in Dunamu, also acquired Openedges Technology's CPS two years ago, and this time it injected additional funds.
However, investors are not taking this paid-in capital increase as a boon of "external investment attraction." On the 31st, the day after the paid-in capital increase was announced, Openedges Technology's share price plunged 10%.
Openedges Technology said it decided on a paid-in capital increase issuing about 1,145,000 CPS to raise 20 billion won in operating funds. The conversion price for this CPS is 17,463 won, reflecting a 2.4% premium to the reference price. If the share price falls, the conversion price can be adjusted (refixing) down to a minimum of 12,224 won.
All newly issued CPS will be allocated to "Atinum Growth Investment Partnership 2023." The venture fund formed by Atinum Investment three years ago received more than 17% of its capital from the National Pension Service.
Atinum Investment is a VC that made huge returns with an early investment in Dunamu, operator of the virtual asset exchange "Upbit," and achieved strong results by investing in LigaChem Biosciences, Kakao Games and Pearl Abyss.
Even though a VC with strong results moved to invest, Openedges Technology's share price instead tumbled. Experts assess that the company has growth potential, but as losses continue and funding is repeated, investor sentiment appears to have weakened.
Openedges Technology develops system semiconductor design IP (intellectual property) technology, and if demand for high-performance artificial intelligence (AI) semiconductors increases, revenue is expected to grow. However, operating losses have continued since its founding, and losses have persisted even after entering the KOSDAQ market in 2022 under the "Tesla requirement" ("listing without realized profit").
With annual losses of 30 billion won, accumulated deficits are piling up. Since the business is not making money, funding has continued. The funds raised through this paid-in capital increase will be used for operating expenses such as payroll.
There are various interpretations of Atinum Investment's participation in this paid-in capital increase. Atinum Investment invested in Openedges Technology even before its listing and also acquired CPS issued in 2024. Early this year, it converted the CPS acquired two years ago into common shares.
An industry official said, "As Openedges Technology's share price fell, Atinum Investment lowered the conversion price of the previously acquired CPS and converted them into common shares, and there likely was a judgment that additional injections were needed to support operating funds required to exit the equity already held," adding, "It is difficult to view a VC's participation in a paid-in capital increase as purely positive."