DigitalOptics Resolves Concerns Over Capital Erosion... "Confident in Escaping Management Status"

[Asia Economy Reporter Jang Hyowon] Digital Optics announced on the 5th that it will strengthen financial soundness and accelerate new business by resolving concerns over capital erosion through a free capital reduction.

In April, Digital Optics completed a capital reduction to cover accumulated losses, reducing its capital from approximately 63.5 billion KRW to 12.7 billion KRW. Following the capital reduction, the shares were consolidated at a ratio of 5 common shares to 1 new share, and the newly consolidated shares were successfully listed without any issues.

Additionally, the company acquired and canceled convertible bonds (CB) worth approximately 38 billion KRW from its largest shareholder, Noble Bio, before maturity, thereby enhancing financial stability by lowering the debt ratio.

A company official stated, “Through the free capital reduction, Digital Optics’ capital erosion ratio is expected to fall below 50%, which is anticipated to resolve the capital erosion that led to its designation as a management stock.”

Digital Optics is expected to completely resolve the management stock issue this year. Along with addressing the management stock issue, the company is accelerating the expansion of new businesses, including the development and patent acquisition of a saliva-based rapid diagnostic kit.

A company representative explained, “About four months after being designated as a management stock, Digital Optics has secured financial soundness through free capital reduction and debt ratio reduction, signaling a positive outlook for exiting the management stock status. Based on strengthened financial stability, we will continue to secure steady sales through collaboration with our largest shareholder, Noble Bio, including the global sales of COVID-19 specimen collection swabs.”

They added, “We are actively pursuing M&A to diversify revenue-generating businesses and plan to accelerate the discovery of new growth engines in the bio sector.”

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