K Wave Media Founders Gift 10 percent of Total Shares Outstanding to Advance Financial Restructuring, Reduce Dilution, and Strengthen Balance Sheet

Core Viewpoint - K Wave Media (KWM) is restructuring its capital by contributing 6.24 million shares and lending an additional 1.55 million shares to its treasury, totaling approximately $25 million, to strengthen its long-term growth foundation [1] Group 1: Financial Restructuring - The company is undergoing financial restructuring following the confirmation of an investment from Galaxy Digital, which will accelerate the implementation of its core growth strategy, including the K-IP STO platform and BTC treasury plan [2] - The K-IP STO platform aims to tokenize profit rights of content IP, allowing global participation in production and profit sharing through automated smart contracts [2][3] Group 2: Strategic Initiatives - KWM's K-IP STO platform was a key factor in Galaxy Digital's investment, which aims to support KWM with asset management and strategic guidance [3] - The company plans to utilize the donated and loaned shares for increasing corporate value, including the K-IP STO platform, BTC purchases, strategic M&A, and debt reduction [5] Group 3: Impact on Profit Structure - The K-IP STO platform is expected to fundamentally change the profit structure and risk management for entertainment companies, marking a significant turning point for KWM's fundamentals [4] - The company anticipates improvements in EPS, reduction in overhang risk, and stabilization in share prices due to the reduction in outstanding shares [5]