ICH Adds "Physical AI Robot" to Articles of Incorporation... 5-to-1 Reverse Stock Split Approved

Advanced materials and components specialist ICH is adding the physical artificial intelligence (AI) robot materials and components business to its new business objectives and is gearing up to expand into this new area. The company has decided to increase the limit for third-party allotted new share issuance and has also confirmed a 5-to-1 reverse stock split as part of its efforts to restructure both its business and capital structure.

On August 31, ICH announced that, at its extraordinary general shareholders' meeting, it approved amendments to its articles of incorporation to include “manufacturing and sales of robot materials and components” as a new business objective, along with the plan for a 5-to-1 reverse stock split, as originally proposed.

This amendment is a measure to expand into robotics businesses focused on physical AI. ICH recently began supplying high-performance polyurethane (PU) foam materials for use in mass-produced humanoid robots from global companies, and now plans to expand its related materials and components business in earnest to secure new revenue streams.

In particular, as the humanoid robot market rapidly grows, demand for high-performance materials for impact absorption, weight reduction, exterior, and drive parts is also expected to increase. The company intends to focus its business capabilities on expanding its existing materials technology into the robotics industry.

The company has also expanded its funding base. At the extraordinary general shareholders' meeting, shareholders approved the proposal to increase the limit for third-party allotted new share issuance from the previous 20% of total issued shares to up to 50%, to allow for urgent fundraising, technology introduction, research and development, and production needs.

This move is expected to provide greater flexibility in fundraising for future strategic investor attraction or investment in new businesses.

The reverse stock split has also been finalized. To stabilize the stock price and maintain an appropriate number of circulating shares, ICH will combine every five existing shares into one. As a result, the total number of issued shares will decrease from approximately 25.79 million to about 5.16 million, and the par value per share will change from 500 won to 2,500 won.

There will be no change in the total capital due to the reverse stock split. The company aims to maintain an optimal number of circulating shares and enhance stock price stability, thereby increasing shareholder value.

ICH plans to foster the robot materials and components business as a new growth engine alongside its existing advanced materials and components business. In particular, whether or not the mass production of the newly supplied high-performance PU foam expands is considered a key factor in gauging the initial success of the new robotics business.

An ICH representative stated, “Through this extraordinary shareholders’ meeting, we have comprehensively reorganized our business and capital structure to secure growth potential and enhance shareholder value. We will accelerate mass production and sales in new businesses such as robotics and improve the profitability of existing businesses to strengthen both our financial stability and corporate value.”

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