1. What Happened to Flask?
Flask’s delisting was confirmed on July 14, 2025. This indicates serious accounting opacity and management issues stemming from a disclaimer of opinion from its auditor. Trading in the stock has been suspended since March 29, 2024.
2. Why This Situation?
- Failed Business Diversification: Attempts to offset the decline in its construction business by entering the IT (mobile games, game channeling) and real estate development sectors have failed to yield significant results.
- Worsening Financial Condition: As of the 2025 semi-annual report, Flask recorded a deficit of KRW 64.1 billion and KRW 85.9 billion in debt, facing a severe financial crisis. Operating and net losses continue.
- Disappointing Semi-Annual Results: Sales fell short of market expectations, and net income recorded a significant loss.
3. What Should Investors Do?
With delisting confirmed, investors need to assess the situation objectively and consider cutting their losses quickly. Since trading is already suspended, minimizing further losses is paramount. It’s crucial to stay informed about procedures for disposing of shares, such as potential liquidation sales.
4. What’s Flask’s Future?
Flask’s survival post-delisting is highly unlikely. Though it’s attempting self-rescue measures like new business ventures, overcoming the critical setback of delisting appears challenging. Investors should closely monitor Flask’s future developments and exercise caution when new information is released.
Frequently Asked Questions
Why was Flask delisted?
Flask was delisted due to accounting opacity and management issues, leading to a disclaimer of opinion from its auditor.
What happens to my Flask shares now?
With delisting confirmed, shares cannot be traded on the regular market. You need to find out about potential liquidation sale procedures.
Is there a chance Flask will be relisted?
The possibility of relisting is extremely low given the current circumstances.
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