1. FourByFour’s Rights Offering: What’s Happening?
FourByFour announced a rights offering of 29.9 billion KRW on September 5, 2025. The offering will be conducted through a rights offering to existing shareholders followed by a public offering for any unsubscribed shares. The funds raised will be used for operating expenses. The key dates are as follows:
- Record Date: October 15, 2025
- Subscription Date: December 5, 2025
- Payment Date: December 12, 2025
- Listing Date: December 29, 2025
2. Why the Rights Offering?
FourByFour needs funds to secure growth engines such as the commercialization of its AI solution ‘PIXELL,’ strengthening its content business, and investing in its e-sports business. As the company continues to experience operating losses and net losses, this rights offering is interpreted as a way to strengthen its financial stability and pursue business expansion.
3. Rights Offering: Opportunity or Risk?
Positive Aspects
- Securing short-term financial stability
- Securing future growth engines and expanding investment
Negative Aspects
- Concerns about stock dilution (approximately 28%)
- Need to verify the efficiency and profitability of fund usage
- Short-term downward pressure on stock price
4. What Should Investors Do?
FourByFour has growth potential based on its technology, but it also faces financial risks and challenges in improving profitability. Therefore, careful analysis and prudent judgment are required before making investment decisions. Key points to observe are as follows:
- Fund allocation plan and business performance
- Concretization of ‘PIXELL’ revenue model and sales expansion
- Improvement in the profitability of affiliated companies
- Changes in the macroeconomic environment (interest rates, exchange rates) and competitor trends
From a short-term investment perspective, investors should be aware of the risk of stock price decline. However, if you positively evaluate FourByFour’s growth potential from a long-term perspective, you may consider this as a buying opportunity at a low price. However, investment decisions should always be made carefully at your own risk.
Frequently Asked Questions (FAQ)
Why is FourByFour conducting a rights offering?
The purpose is to raise operating funds for securing growth engines such as the commercialization of its AI solution ‘PIXELL,’ strengthening its content business, and investing in its e-sports business.
How will the rights offering affect the stock price?
Generally, a rights offering puts downward pressure on the stock price in the short term. However, the stock price can recover depending on the long-term business performance.
What should investors pay attention to?
Investors should closely monitor the efficiency and profitability of fund usage, the performance of the ‘PIXELL’ business, and the financial soundness of affiliated companies.
