[Edaily Reporter Kwon Oh Seok ] LabGenomics. Co., Ltd.(084650)is taking steps to stabilize its stock price and enhance corporate value through a stock consolidation.

LabGenomics. Co., Ltd., a company specializing in genomic molecular diagnostics, announced on the 30th that it had decided to conduct a 5-to-1 stock consolidation, as disclosed in a regulatory filing the previous day (the 29th).
This stock consolidation will be carried out by combining five common shares with a par value of 500 won into one common share with a par value of 2,500 won. As a result, the total number of issued shares will decrease from the current 74,239,990 to 14,847,998, but there will be no change in the company’s capital.
The company explained that this measure is intended to secure an appropriate number of shares in circulation and proactively respond to changes in capital market regulations. Furthermore, the company aims to lay the groundwork for the market to more accurately evaluate its intrinsic value by mitigating the perception of the stock as a low-priced share.
While a stock consolidation does not alter the company’s intrinsic value, it is expected to mitigate supply-and-demand volatility caused by an excessive number of outstanding shares and alleviate the perception of the stock as a “low-priced stock.” LabGenomics. Co., Ltd. plans to use this opportunity to enhance investor confidence and communicate its mid- to long-term growth strategy to the market more effectively.
Ryu Jae-hak, CEO of LabGenomics. Co., Ltd., stated, “This stock consolidation is a measure to enhance shareholder protection and stock price stability in response to the increasingly stringent capital market regulatory environment,” adding, “In the medium to long term, we will demonstrate our corporate value through portfolio restructuring centered on high-value-added businesses, the performance of our U.S. operations, and the pursuit of new business initiatives.”
LabGenomics. Co., Ltd. is currently pursuing a restructuring of its business structure with a focus on profitability. In South Korea, the company is divesting non-core businesses and concentrating on high-value-added areas such as NGS (next-generation sequencing)-based diagnostics. Meanwhile, QDx, the U.S. CLIA-certified laboratory it acquired, recorded a profit on a standalone basis last year—just two years after the acquisition—through operational streamlining.