What Happened?

Arc Solutions, which was scheduled to be delisted on July 21, 2025, had the process suspended on July 22nd due to a request for an injunction to suspend the delisting decision. This sparks a glimmer of hope for investors, but it’s too early to be relieved.

Why Did This Happen?

Arc Solutions is experiencing severe financial difficulties, including continuous operating losses, a high debt ratio, and liquidity risks. To make matters worse, external factors such as rising raw material prices and a high-interest rate environment have exacerbated the situation.

So, What’s Next?

While a short-term stock price increase can be expected due to the suspension of the delisting process, sustained growth will be difficult without addressing the fundamental problems. The court’s final decision, the feasibility of the financial improvement plan, and securing liquidity will be key factors determining the future stock price.

What Should Investors Do?

  • • Confirm the final court decision: Whether the injunction is granted will have the biggest impact on the stock price.
  • • Review the financial restructuring plan: Carefully examine the specifics and feasibility of the plan presented by the company.
  • • Monitor liquidity securing status: Continuously check the funding plan and its implementation results.
  • • Watch the progress of the lawsuit: The outcome of the ongoing lawsuit could affect the company’s financial status.
  • • Evaluate the management’s capabilities: Pay close attention to the new management’s strategies and execution skills.

Currently, investing in Arc Solutions carries high risks. Prudent investment decisions are crucial at this juncture.