LabGenomics Decides on 5-to-1 Reverse Stock Split to Enhance Share Price Stability
LabGenomics, a company specializing in genomic molecular diagnostics, announced that it has decided to implement a 5-to-1 reverse stock split to enhance share price stability and lay the foundation for increasing corporate value.
According to the Financial Supervisory Service's Electronic Disclosure System (DART) on June 30, LabGenomics disclosed the previous day that it will proceed with a reverse stock split by consolidating every five common shares with a par value of 500 won into one common share with a par value of 2,500 won. After the split, the total number of issued shares will decrease from 74,239,990 to 14,847,998, but the capital will remain unchanged.
LabGenomics stated that this reverse stock split aims to secure an appropriate number of shares in circulation and proactively respond to recent changes in the capital market system. In addition, by alleviating the perception of low-priced stocks, the company seeks to establish a foundation for its intrinsic corporate value to be evaluated more appropriately by the market.
LabGenomics CEO Ryu Jae-hak commented, "This reverse stock split is a short-term measure to proactively protect shareholders and enhance share price stability and investor trust in the face of strengthening capital market regulations. In the mid- to long-term, we will prove our intrinsic corporate value by restructuring our business with a focus on profitability, achieving results in the U.S. market, and pursuing various new businesses."
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Meanwhile, LabGenomics is currently pushing forward with a restructuring of its business structure focused on profitability. Domestically, the company is streamlining marginal and non-core businesses and concentrating on next-generation sequencing (NGS)-based diagnostics and high-value-added sectors. 'QDx,' a U.S. CLIA lab acquired by LabGenomics, achieved a profit on a standalone basis last year, just two years after the acquisition, through the enhancement of business structure efficiency.
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