Parataxis Ethereum (290560.KQ), a company specializing in Ethereum-based digital asset and data security, is pursuing a 2-for-1 share consolidation. The company said its capital and existing shareholders' ownership ratios will remain unchanged after the consolidation, and that it plans to continue protecting shareholder interests through a special committee.
Parataxis Ethereum said on the 13th that it had decided on a 2-for-1 share consolidation, merging two common shares into one. The change takes effect on October 15 this year. The par value per share will rise to 200 won from 100 won previously. The total number of issued shares is expected to be adjusted to 11,181,364 from 22,362,730. The consolidation will have no effect on the company's capital or existing shareholders' ownership ratios.
Ahead of the consolidation, Parataxis Ethereum established a "merger special committee" independent of the company. The committee is responsible for checking whether existing shareholders' equity value or voting rights are disadvantaged as the total number of issued shares is halved through the consolidation. It also plans to review the effect on the relative rights of shareholders of both companies in the merger process.
The committee recommended that the company continue to develop shareholder protection measures so that existing shareholders' interests are not harmed as it pursues the merger process and key policies going forward. Parataxis Ethereum said it plans to enhance corporate value and protect shareholder interests by taking the committee's review opinions into account.
Lee Myung-hoon, chief executive of Parataxis Ethereum, said the consolidation is "a procedure to reasonably reorganize the share structure in line with strengthening management stability and changes in the capital structure." Lee added: "As we have closely reviewed the effect on existing shareholders' equity value and interests through the special committee, we will continue to pursue management decisions based on enhancing corporate value and protecting shareholder interests, and will transparently guide the market on key aspects of the merger process."
