Announcement • Jul 06
Nuon Co., Ltd. announced that it expects to receive KRW 18.99999816 billion in funding from KPM TECH Co., Ltd. Nuon Co., Ltd. announced private placement to issue 9,187,620 common shares at a par value of KRW 1,000 per share at an issue price of KRW 2,068 for gross proceeds of KRW 18,999,998,160 on July 3, 2026. The transaction includes participation from returning investor KPM TECH Co., Ltd. The shares are restricted, subject to lock up for 1 year. The company will issue shares by third party allotment. The transaction is approved by board of directors of the company and is expected to close on July 14, 2026. The total shares issued before capital increase are 6,365,430 shares post issuance will be 15,553,050 shares. New Risk • Jun 26
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₩13.3b (US$8.62m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₩14b free cash flow). Earnings have declined by 6.0% per year over the past 5 years. Shareholders have been substantially diluted in the past year (78% increase in shares outstanding). Market cap is less than US$10m (₩13.3b market cap, or US$8.62m). Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). Board Change • May 08
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 2 non-independent directors. Independent Outside Director GwangJun Lee was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. 
