LabGenomics to Execute 5-to-1 Reverse Stock Split... New Shares to Be Listed on September 23

LabGenomics announced that at the 25th Extraordinary General Meeting of Shareholders held on August 18, all proposed agenda items, including a 5-to-1 reverse stock split, were approved as originally presented.

According to LabGenomics on August 19, the proposal for a 5-to-1 reverse stock split was approved at the general meeting. As a result, the nominal value per share will change from 500 won to 2,500 won, and the total number of issued shares will decrease from 74.24 million shares to 14.85 million shares. The scheduled listing date for the new shares is September 23. By executing this reverse stock split, LabGenomics aims to mitigate short-term volatility arising from an excessive number of shares in circulation and to improve the perception of the company as a low-priced stock, thereby ensuring that the company's intrinsic value is properly reflected in the market.

The amendment of the Articles of Incorporation to establish an Audit Committee was also approved as originally proposed. Although LabGenomics is not currently required by law to have an Audit Committee, the company is voluntarily adopting this system to strengthen transparent board-centered management. Moving forward, the Audit Committee will be composed primarily of individuals with expertise in fields such as accounting, finance, and healthcare, in order to establish a monitoring system for management and to increase credibility in the market by attracting large institutional investors.

Ryu Jae-hak, CEO of LabGenomics, stated, "Through this extraordinary general meeting of shareholders, we will further strengthen efforts to enhance shareholder value and improve corporate governance, while focusing on profitability from a business standpoint. Although losses temporarily widened in the second quarter, the loss actually decreased compared to the same period last year. Starting from the third quarter, with the burden of bad debt provisions easing and the effects of expanding our sales organization in the United States beginning to materialize, we expect to see a clearer improvement trend."

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