19 KOSDAQ Firms Announce Stock Mergers in July to Dodge Penny Stock Delisting Rule

According to E-Daily, 19 KOSDAQ-listed companies announced stock mergers by July 10 to avoid the penny stock delisting rule that took effect this month. The rule eliminates shares trading below 1,000 Korean won for 30 consecutive days. However, mergers have proven ineffective; 13 firms that completed consolidations in June fell below their listing reference prices by July 10, with an average return of -40.5%. Some companies like Global SM and Crystal New Materials dropped back near the 1,000-won threshold. With over 200 merger announcements across KOSDAQ this year, experts warn that mechanical share consolidation without underlying business improvements cannot prevent renewed delisting pressure.
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