Alticast Implements 5-to-1 Free Capital Reduction... "Accelerating Corporate Value Enhancement"

Alticast, a company specializing in digital broadcasting software, announced on March 11 that it will undertake a major improvement of its financial structure through a 5-to-1 free capital reduction. This move is seen as a strategic decision not simply to reduce the capital stock, but to resolve accumulated deficits and implement a shareholder return policy.

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This decision takes into account the recent listing system reform measures announced by the Financial Services Commission. It aims to eliminate the low-priced “penny stock” image and to establish a sound financial structure that meets the strengthened listing maintenance standards.

Of particular note is the “normalization” of financial statements. Alticast plans to transfer its capital surplus to retained earnings and fully offset the accumulated deficit that has built up over several years. This will not only correct distortions in the capital structure, but also provide the legal and accounting foundation for active shareholder return policies such as dividends or treasury share cancellations in the future.

The company’s fundamentals are also showing a sharp recovery. Last year, Alticast achieved consolidated sales of 53.1 billion won, a dramatic increase of 835% compared to the previous year. Operating profit also turned positive, reaching 3.2 billion won.

The most significant change for Alticast is the acquisition of a solid cash cow-Daehyun Gigeun, a company specializing in HVAC equipment, acquired in April 2025. Daehyun Gigeun recorded sales in the high 60 billion won range based on its separate financial statements and is a sound specialty construction company with stable annual operating profits. Leveraging 40 years of accumulated expertise and partnerships with top-tier construction companies, Daehyun Gigeun has been steadily increasing its order backlog, making further growth this year highly likely. After years of deficits, Alticast succeeded in turning a profit with consolidated operating income of 3.2 billion won last year following the acquisition of Daehyun Gigeun.

Alticast is also accelerating aggressive mergers and acquisitions (M&A) and new business initiatives to secure future growth engines. Aptamer Sciences, a KOSDAQ-listed company acquired last October, possesses specialized drug delivery system (DDS) technology. Recently, Alticast expanded its business scope into the clinical research organization (CRO) market by acquiring ISS, a company specializing in analytics, and is expected to continue its aggressive business expansion strategy this year as well.

Through its subsidiary Altiplatform, Alticast is pursuing blockchain-based enterprise payment solutions and promotion system businesses. The company anticipates delivering tangible results in the B2B sector soon and stated it will continue multifaceted efforts to identify additional new business opportunities.

Alticast’s plan with this 5-to-1 free capital reduction is to resolve the accumulated deficit structure in its financial statements and lay the groundwork for shareholder returns. By fully offsetting the carried-forward deficit using capital surplus, the company will be able to implement dividends or treasury share cancellations once profits are generated in the future.

In fact, the company demonstrated a strong turnaround signal last year, recording sales of 53.1 billion won-an 835% increase over the previous year. This year, business stability is expected to improve further as expansion into the North American market and the effects of fixed cost structure improvements begin to materialize.

Alticast CEO Jung Ukjae stated, “The current decline in share price reflects market misunderstandings and excessive concerns about the free capital reduction. We will prioritize enhancing shareholder value through genuine improvements in corporate value and securing financial soundness.”

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