Rights Offering Dilutes Shares by 65.48% Amid Delisting Risk and Deteriorating Finances

The company decided to conduct a rights offering of 7.4 million shares (approx. 128 billion won), representing a 65.48% dilution relative to existing shares.
Simultaneously, a 5:1 reverse stock split is planned to address capital impairment and penny stock risk.
Due to five consecutive years of operating losses, the company was designated as a 'investment caution item' in March 2026.
As of end-2025, debt ratio stood at 383%, interest coverage ratio at -4.95x, and capital impairment ratio at 43.5%, indicating severely deteriorated finances.
Strengthened delisting requirements (market cap below 30 billion won, penny stock rules) make management item designation and delisting highly likely.
Sales concentration on a single customer A (38.5%) poses high risk, while pricing power weakness results in a cost of goods sold ratio of 99.6%.
The largest shareholder plans to subscribe for 120% of his allocation and purchase additional rights, raising his stake from 14.7% to 18.7%.
Proceeds will be used for debt repayment (1.8 billion won), facility investment (4.0 billion won), and working capital (7.0 billion won).

ADVERTISEMENT (250px+)

Filing: [Correction of Description] Securities Registration Statement (Equity Securities)
Company: NUIN TEK (012340)
Submission: NUIN TEK CO., LTD
Receipt: 04-27-2026
Amended (Refer to related filing)