1. What is a Rights Offering?

Sandoll will conduct a 1:1 rights offering with a record date of August 6, 2025, and a listing date of August 26, 2025. Simply put, shareholders who own one share will receive one additional share. The number of shares doubles, but the price per share theoretically halves.

2. Why the Rights Offering?

Sandoll has secured growth engines such as platform business expansion and new business ventures. The rights offering is analyzed as an attempt to lower the stock price, increase investment accessibility, and stimulate trading volume. It can also be expected to lower the debt ratio by increasing capital. However, it’s important to remember that the actual corporate value does not change.

3. So, Should I Invest?

  • Positive Factors:
    • Expected decrease in debt ratio and improvement in financial structure
    • Potential increase in liquidity and trading activation
    • Lowered stock price reduces investment barriers
  • Negative Factors:
    • Share dilution and decrease in existing shareholder value
    • Increased short-term stock price volatility
    • No change in fundamentals

Sandoll’s high debt ratio (146.23% at the end of 2024) is a stumbling block to sustainable growth. The low profitability despite sales growth is also concerning. While the rights offering may lead to a short-term stock price increase, long-term investors need to carefully check whether the fundamentals are improving.

4. Investor Action Plan!

A rights offering is not an ‘unconditional positive’. Before making an investment decision, it is necessary to comprehensively analyze Sandoll’s financial status, growth strategy, and external environmental factors. In particular, it is important to carefully examine the possibility of success of new businesses and the effectiveness of debt reduction strategies. Continuous attention should also be paid to changes in the external economic environment and industry trends.