Rights offering: final issue price set

What happened

DaedongGear / Final issue price for rights offering confirmed / (2026-07-15)

Rights offering: final issue price confirmed

1. Planned issuance details (a) Type of shares: Registered common shares (b) Number of shares: 5,767,800

2. Final issue price (per share) (a) Final price (KRW): 6,980 (b) First-round price (KRW): 9,630 (c) Second-round price (KRW): 6,980

3. Par value (KRW): 500

4. Determination date: 2026-07-14

5. Other matters for investment reference

Calculation of the final issue price: Under Article 5-18 (Determination of the issue price for rights offerings) of the "Regulation on Issuance and Disclosure of Securities," the discount rate etc. for rights offerings to existing shareholders and preferential public offerings to existing shareholders has been deregulated so the issue price may be set freely; however, due to concerns about market disruption and existing practice, the issue price is calculated applying in part the method of Article 57 of the (former) "Regulation on Issuance and Disclosure of Securities."

(1) First-round issue price calculation: using the 3rd trading day before the new share allotment record date as the base date, the lower of (i) the arithmetic average of the one-month volume-weighted average price, the one-week volume-weighted average price, and the closing price on the base date, all traded on KOSDAQ, and (ii) the closing price on the base date, is used as the base share price, to which a 25% discount rate is applied; the first-round issue price is calculated by the formula below. Amounts below the quotation unit are rounded up, and if the per-share issue price is below par value, par value is used. First-round issue price = Base share price x (1 - discount rate) / [1 + (capital increase ratio x discount rate)]

(2) Second-round issue price calculation: the second-round issue price is calculated using the 3rd trading day before the subscription date for existing shareholders as the base date, applying the same 25% discount rate to the lower of (i) the arithmetic average of the one-week volume-weighted average price and the closing price on the base date, both on KOSDAQ, and (ii) the closing price on the base date, by the formula below. Amounts below the quotation unit are rounded up, and if the per-share issue price is below par value, par value is used. Second-round issue price = Base share price x (1 - discount rate)

(3) Final issue price calculation: the final issue price is the lower of the first-round issue price in (1) and the second-round issue price in (2). However, under the calculation basis of Article 165-6 of the "Financial Investment Services and Capital Markets Act" and Article 5-15-2 of the "Regulation on Issuance and Disclosure of Securities," if the price calculated by applying a 40% discount rate to the volume-weighted average price for the 3rd to 5th trading days before the subscription date as the base share price exceeds the lower of the first-round and second-round issue prices, that amount becomes the final issue price. (Amounts below the quotation unit are rounded up.)

(4) Matters concerning disclosure of the confirmed offering price: the first-round issue price was determined on the 3rd trading day before the new share allotment record date (June 9, 2026) and disclosed on the Financial Supervisory Service's electronic disclosure system (DART) on June 10, 2026. The final issue price was determined on the 3rd trading day before the subscription date for existing shareholders (July 14, 2026) and is scheduled to be disclosed on DART on July 15, 2026, and will be announced on the Company's website (http://www.daedonggear.com) as specified in the Articles of Incorporation in lieu of individual notice. Following determination of the final issue price, an amended report (confirmation of securities issuance terms) will be disclosed on DART.

Note: the general public offering issue price will apply the same final issue price as applied to the subscription by existing shareholders.

Related disclosures: 2026-07-15 Paid-in and bonus capital increase decision (rights offering to existing shareholders followed by general public offering of forfeited shares)