Business
K Wave Media Founders Gift 10 percent of Total Shares Outstanding to Advance Financial Restructuring, Reduce Dilution, and Strengthen Balance Sheet
6.24 Million Shares and an Additional 1.55 Million Shares Lended Interest-Free NEW YORK and SEOUL, South Korea, Oct. 16, 2025 (GLOBE NEWSWIRE) -- K Wave Media
About this update from K Wave Media, Ltd.
[{"type":"text","content":"6.24 Million Shares and an Additional 1.55 Million Shares Lended Interest-Free\nNEW YORK and SEOUL, South Korea, Oct. 16, 2025 (GLOBE NEWSWIRE) -- K Wave Media (Nasdaq: KWM), a Korean cultural innovation and digital asset company, today announced that certain of its key shareholders, including co-founders, signed a formal agreement to contribute 6.24 million of the Company’s ordinary shares to the Company’s treasury and lend, at no charge, an additional 1.55 million ordinary shares to be held in the Company’s treasury. The combined 7.79 million ordinary shares are worth approximately $25 million, based on the market price of the shares as of October 15, 2025. This decision is a rare occurrence in capital markets, as KWM aims to reorganize its capital structure and strengthen its long-term growth foundation. Key highlights include: Zero dilution: The subject shares, including the 10% gifted and the additional 3% loaned share, are equivalent to approximately 13% of the total issued and outstanding shares, and approximately 25% of the current number of publicly traded shares (public float).Strategic firepower: KWM plans to utilize the donated and loaned shares to increase its corporate value, including the K-IP STO (Security Token) platform, BTC purchases, strategic M&A, debt reduction, and for general working capital purposes.Strengthens the balance sheet: The Company expects its EPS to improve, a reduction in overhang risk, and stabilization in the price of its ordinary shares due to the reduction in the overall number of outstanding shares, which is expected to have a financial effect equivalent to the expansion of equity. The company continues its financial restructuring following the confirmation of the recently announced Galaxy Digital (Nasdaq/TSX: GLXY) investment, and will accelerate the implementation of its core growth strategy, including the K-IP STO platform and BTC treasury plan. The platform is a new financial infrastructure designed to tokenize the profit rights of content IP, such as movies, dramas, music, and performances, allowing fans and investors worldwide to participate in the production stage and share in the profits. Through an automated settlement structure based on smart contracts, transparent and real-time profit distribution is enabled among creators, production companies, and investors. KWM's strategy i...