CrowdWorks Announces 1 Billion Won Third-Party Allotment Rights Offering Amidst Ongoing Financial Struggles and Dilution Concerns

Third-party allotment rights offering via small public offering: 297,265 shares at 3,364 won per share, total approx. 1 billion won (9.98% discount)
Proceeds to be used entirely for operating funds (net proceeds approx. 998 million won after issuance costs of approx. 220 million won)
FY2025 consolidated: revenue 10.48 billion won (down 12.7% YoY), operating loss 13.37 billion won, net loss 21.7 billion won (continued losses)
Debt ratio 141.7% (improved but still high), operating cash flow -10.96 billion won (insufficient internal cash generation)
Frequent recent capital raising: 23.4 billion won rights offering in Aug 2025, additional 9 billion won issued in Jan-Feb 2026
Significant deviation from projections at time of SPAC merger (2025 projected revenue 45.38 billion vs actual 9.76 billion, projected operating profit 15.47 billion vs actual loss of 10.59 billion)
Credit rating BB- (speculative grade), risk of being designated as a managed item and delisting
Litigation risk: freelance worker status dispute (max approx. 480 million won)
Change in control: major shareholder changed from Park Min-woo to XRP1ho Union in Feb 2026
No dividend history, persistent loss per share (FY2025: -1,965 won)

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