Seven Star Works, a KOSDAQ-listed broadcasting equipment maker, said that it will issue new shares worth about 8 billion won ($7 million) to four individuals and an investment fund.
The company, whose majority shareholder is Hong Kong-based Sun Seven Stars Hong Kong Cultural Development, plans to issue 606,057 new shares at 13,200 won per share. Acquirers of Seven Star Works’ new shares are required to hold onto the shares for at least a year.
Seven Star Works said in its disclosure report that the purpose of the new share issuances is for its business operations, which turned into a loss last year. The company posted an operating loss of 1.8 billion won last year, from operating profit of 991 million won a year ago.
Sun Seven Stars Hong Kong Cultural Development, a media and content distributor, has a 16.52 percent stake in Seven Star Works, which is the country’s No.4 supplier of high-definition displays for broadcasting networks following Sony, JVC and Panasonic. Sun Seven Stars’ advisor is Bright Union Hong Kong.
Seven Star Works said that it is currently developing smart audio and HD digital video recorder businesses as new growth segments, according to its financial statements.
By Park Hyong-ki (hkp@heraldcorp.com)