This article was displayed on the ChosunBiz MoneyMove (MM) website at 6:13 a.m. on June 5, 2026.
ITOXI, a KOSDAQ-listed company facing delisting, has repeatedly failed to raise funds.
ITOXI, which is undergoing delisting procedures due to a deteriorating financial structure, must secure capital to escape the crisis, but it has no remaining capital-raising plans. Given its recent results and the suspended transaction status, some note that devising additional capital-raising measures will not be easy.
According to the capital market industry on the 5th, ITOXI recently disclosed that three third-party allotment paid-in capital increases it had pursued since last year were withdrawn because investors failed to make payments. The paid-in capital increases whose payments were recently canceled total about 22 billion won.
ITOXI, which runs game development and healthcare businesses, exceeded a 50% capital impairment ratio in 2024 and was designated as an issue for management, and after receiving a disclaimer of opinion last year, it is now undergoing delisting procedures. Its auditor, Samjong KPMG, cited a disclaimer of opinion due to a scope limitation and noted uncertainty about the company's ability to continue as a going concern in the audit report. Although its accumulated deficit amounts to about 15 billion won, it also posted an operating loss of around 4.7 billion won, leading the auditor to judge that continuing operations would be difficult.
ITOXI has attempted multiple capital raises since last year to improve its financial structure. It began with a 10 billion won third-party allotment paid-in capital increase in June last year, followed by additional issues of 3 billion won and 9 billion won in November.
But the actual capital raising did not proceed as planned. The paid-in capital increase plans were postponed as their payment schedules were changed 14, 21, and 13 times, respectively, and the payers were switched, but payments ultimately were not made. ITOXI released withdrawals of the three paid-in capital increases from Apr. 30 to on the 1st.
For ITOXI, which needs to improve its financial structure to avoid delisting, the burden has grown after successive failures of paid-in capital increases. During this process, the stock price, which peaked in the 10,000 won range in 2024, fell to 312 won before the transaction halt. Its market capitalization is only 4.5 billion won, falling short of the 15 billion won threshold that can trigger delisting.
Industry watchers believe ITOXI's repeated failures in paid-in capital increases are also linked to the weak stock performance up to just before the transaction suspension on Mar. 23. In the paid-in capital increases withdrawn on the 1st and last month, the issue price was 500 won, about 70% higher than the then share price of 312 won. When the paid-in capital increase was first pursued, its price may have been below the share price, but continued stock weakness created a situation where participating in the paid-in capital increase would lead to losses.
A capital market industry source said, "The failure to pay for the paid-in capital increase was somewhat foreseeable," adding, "The problem is that, given worsening results and weak shares, the likelihood of follow-up capital raising to prevent delisting is not high."
Raising funds through convertible bonds (CBs) is also proving difficult. ITOXI sought to issue 4 billion won of 18th CBs late last year, but the issue was withdrawn after payment again failed to materialize. The last time ITOXI successfully raised funds was in May last year, when it issued 700 million won of 17th CBs.
An industry source said, "In the current situation, the most ideal scenario appears to be a sale of management control followed by a paid-in capital increase by the new management," adding, "However, given the high likelihood of delisting, it is uncertain whether a new largest shareholder candidate can be found."