EV Advanced Materials to Initiate 10-to-1 Reverse Stock Split..."Improving Financial Structure and Enhancing Shareholder Value"

KOSDAQ-listed EV Advanced Materials announced on July 13 that it will carry out a 10-to-1 reverse stock split, merging ten common shares into one, in order to strengthen its financial soundness and enhance corporate value.

The company stated that the reverse stock split is intended to offset accumulated deficits and improve its financial structure. All gains from the reverse split will be used to offset deficits; while there will be no change in total equity, the reduction in capital will directly decrease the deficit, thereby improving financial soundness.

A company representative explained, "This reverse stock split is an accounting measure to improve our financial structure and is unrelated to our business competitiveness or the company's intrinsic value. It is a proactive decision to enhance financial stability and further solidify the foundation for future growth."

The company also noted that, as financial soundness requirements and listing maintenance standards for listed companies have recently become more stringent, this deficit settlement is expected to proactively address market concerns and increase corporate credibility.

EV Advanced Materials added that market attention is also focused on the valuation of ProLogium, a global all-solid-state battery company in which it is investing. In particular, the company expects that, should ProLogium's potential listing on Nasdaq in the second half of this year materialize, the combination of the potential value of this investment and enhanced financial structure from the reverse split could serve as an opportunity for a corporate value re-evaluation.

The company representative stated, "Offsetting deficits is not merely an accounting process but a step toward improving the company's fundamentals. We will strengthen financial soundness, increase shareholder value, and pursue sustainable growth by expanding our growth businesses."

The representative added, "After the reverse stock split, the shareholding ratios of the largest shareholder and related parties will remain unchanged, and the split will be applied equally to all shareholders. There will be no changes to the company's assets, liabilities, or total equity, so the company's intrinsic value will not be affected."

Meanwhile, this reverse stock split proposal is expected to be finalized through approval at an extraordinary general shareholders' meeting to be held on August 26. The record date for confirming shareholders is July 28. If approved, trading of shares will be suspended from September 9 to October 6, with the relisting and resumption of trading scheduled for October 7.

This content was produced with the assistance of AI translation services.