1. What Happened?

On July 24, 2025, Foodnamoo announced its decision to dispose of 453,514 treasury shares (1.85% of total outstanding shares), worth approximately ₩1 billion, to secure operating funds.

2. Why the Treasury Stock Disposal?

Foodnamoo’s Q1 2025 report revealed declining sales and operating losses due to subsidiary divestitures and business segment downsizing. A credit rating downgrade further fueled concerns about the company’s financial stability. This has created an urgent need for operating funds and financing for new business ventures, leading to the decision to dispose of treasury stock.

3. What’s the Impact on the Stock Price?

  • Short-term Impact: While securing funds is positive, concerns about stock dilution could lead to a short-term price decline.
  • Long-term Impact: The success of new business ventures (live commerce, offline store expansion, highway rest area business) will be key. Success could improve fundamentals, while failure could negatively impact the stock.
  • Market Conditions: External factors like rising exchange rates, increasing raw material prices, and high interest rates can also influence the stock price.

4. What Should Investors Do?

Investors should be mindful of short-term price volatility and closely monitor the performance of new businesses and improvements in financial stability indicators. Pay attention to Foodnamoo’s future funding plans and disclosures regarding the specific performance of its new ventures.