KOSDAQ-listed JK Synapse said on the 28th that it will push to amend its articles of incorporation to enter new businesses related to nuclear power, including radioactive waste and nuclear power plants, and to conduct a 5-to-1 reverse stock split. The proposals will be submitted to an extraordinary shareholders meeting scheduled for Jun. 5 for final approval.
JK Synapse will add business purposes focused on nuclear power, including the design, construction, transport, and container manufacturing for radioactive waste and spent fuel; projects related to nuclear power plant uprating and maintenance; manufacturing and construction of machinery and equipment for radioactive waste and spent fuel; engineering and technology R&D; and construction engineering services. It plans to apply its core precision chemical technologies for semiconductors and displays, as well as unmanned robot platform technologies such as explosive ordnance disposal (EOD) held by its subsidiary, to the nuclear power business.
JK Synapse will also proceed with a reverse stock split. The goal is to maintain an appropriate number of shares in circulation to stabilize the share price and enhance corporate value. Accordingly, five common shares with a par value of 100 won will be consolidated into one common share with a par value of 500 won, and the total number of issued shares will decrease from 55,861,895 to 11,172,379.
The planned trading halt period due to the reverse stock split is from Jun. 19 to Jul. 5. The new shares are expected to be listed on Jul. 6.
A JK Synapse official said, "We have laid the groundwork for securing financial soundness by reducing the accumulated deficit through measures such as a capital reduction without consideration," and added, "With the structural enhancement of shareholder value through the reverse stock split aligned with our push into new nuclear power businesses, we will work to make this a catalyst for future performance improvement and a revaluation of corporate value."