[Market Focus] Deepnoid Drops Over 12% After 27 Billion Won Rights Offering Announcement

The stock price of Deepnoid, a medical artificial intelligence (AI) solution provider that announced a paid-in capital increase worth 27 billion won, is weak due to concerns about shareholder value dilution.

As of 10:04 a.m. on September 9, Deepnoid was trading at 4,965 won, down 765 won (13.35%) from the previous trading day.

The previous day, after market close, Deepnoid disclosed its decision to carry out a rights offering of 6.83 million new shares, amounting to 27 billion won. The company plans to allocate 21 billion won for operating funds and over 6 billion won for facility investment. The record date for the allocation of new shares is set for October 30.

Meanwhile, in the first half of this year, Deepnoid posted separate financial statement sales of 4.63 billion won, a 9.5% increase compared to 4.23 billion won in the same period last year. The operating loss was 3.8 billion won, which represents a 30.9% decrease from the 5.5 billion won loss in the same period last year.