KOSDAQ-listed JK Synapse said on the 13th it boosted capital by 8.02 billion won to dispel concerns about maintaining its listing. The funds were raised through a paid-in capital increase targeting the largest shareholder Hyulim Robot and the conversion of convertible bonds (CB).
JK Synapse said the inflow from the paid-in capital increase pushed its market capitalization past 20 billion won, initially blocking the risk of being designated for administrative issues due to a shortfall in market cap (under 20 billion won).
On the 28th, JK Synapse completed payment for a 3 billion won third-party allotment paid-in capital increase targeting the largest shareholder Hyulim Robot. The new shares (3,099,173 common shares) were listed on the 11th.
The company also disclosed that CBs worth 5.02 billion won were recently requested to be converted into common shares. The CB conversion shares are scheduled to be listed on the 27th.
Accordingly, JK Synapse said it expanded capital and improved its financial structure through the 3 billion won paid-in capital increase and the 5.02 billion won CB conversion. The aim is to resolve concerns raised in the market about designation as an administrative issue and the maintenance of its listing.
The company used the newly injected funds to repay existing borrowings and converted large CBs into capital. It said it will seek to improve financial indicators by reducing liabilities and interest expenses.
Meanwhile, the company's management contributed personal funds to purchase treasury shares. CEO Hwang Kevin In-seok and Deputy CEO Lim Ji-hyun bought 64,372 shares (0.45% equity) and 62,500 shares (0.44%), respectively, on the open market.