RNT Technology, a KOSDAQ-listed company, is embroiled in ongoing controversies. Following a court-ordered freeze on the major shareholder's stake and a significant drop in stock price, the company has restructured its board and changed its name, yet financial risks remain unresolved. Delays in fundraising and adjustments to the conversion price of large convertible bonds have led to concerns that management's mistakes and financial burdens are being passed on to ordinary investors.
According to investment banking sources, RNT Technology's troubles began in the spring of this year. In April, the major shareholder was abruptly replaced from TS1 Fund to Cross1 Fund. During this transition, a company named Captain Global, which has an unclear identity and a capital of just 10 million won, emerged as the largest investor in Cross1 Fund. Captain Global secured a total of 1.15 million shares through the fifth convertible bond and a capital increase, later selling them on the market for short-term profits.
Around the same time, a share dispute arose within the previous major shareholder, TS1 Fund. Some members misused the fund's seal and securities cards to release shares, resulting in a significant amount of potential sell-off in the market. The stock price, which soared to 6,300 won on April 14, plummeted sharply due to this influx of shares.
The governance risk peaked in October. In September, a lawsuit was filed by the previous management to confirm the non-existence of the CEO's position and to suspend their duties, bringing the management dispute to the forefront. On October 8, the Seoul Central District Court ordered the seizure of electronic registered shares worth 2 billion won owned by 16 members of the major shareholder, Cross1 Fund. As the major shareholder's control weakened, the company held an extraordinary general meeting on October 14. After a fierce vote, the existing board was ousted, new directors were appointed, and an amendment to change the company's name to SquareTech was approved.
As internal discord grew, the stock price stagnated. The closing price on that day was 1,810 won, reflecting a drop of about 60% compared to six months ago. The market capitalization shrank to 25 billion won, falling below the KOSDAQ delisting threshold of 30 billion won for next year. Additionally, there are concerns about further declines due to potential sell-off risks. The sharp drop in stock price has caused the conversion price of the seventh unlisted convertible bond to fall to the minimum limit of 2,492 won (70% of the initial issuance price), increasing the number of convertible shares from 2.17 million to 2.41 million (17.69% of total listed shares), raising concerns about overhang risk.
Amid the stock price decline, financial indicators have worsened. The core business of small power amplifiers (MCP) and film capacitors continues to struggle, leading to an operating loss of 2.157 billion won for the first half of the year. The net profit also turned negative, recording a loss of 6.559 billion won. In August, the company received a penalty point (4.5 points) from the Korea Exchange for failing to disclose information properly, further eroding market trust.
A financial industry insider stated, "With its cash generation ability collapsing and the unclear identity of its shareholders, along with internal strife within the major shareholder, this is a classic case of self-inflicted wounds. While the name change aims to divert attention, the financial burden raises concerns for ordinary investors."
RNT Technology has not responded to multiple requests for interviews regarding the recent controversies.
* This article has been translated by AI.
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