Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Green Cross Stock Swap: A 5% Spread Is a Rare Opportunity

GC Lab Cell Merger: Multi-Staged Arb Setups for Swap Spreads & KOSDAQ 150 Rebalancing on Oct 27

Green Cross Merger Swap Summary & Arb Spread Status

Green Cross Merger Got Shareholder Approval (Both Companies): Arb Spread at 5%, I'd Trade It

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<p>The merger between Green Cross Lab Cell (GCLC) and Green Cross Cell has been completed, and new shares will be listed on November 17, which is next Wednesday.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/240/529/original/Screen+Shot+2021-11-08+at+9.58.23+PM.png?1636426770" class="editor-image img-responsive" data-smartkarma-image-id="240529"></figure></section><div class="content-caption">(Source: KRX KIND)</div><p>Considering the dissent rights exercised, the total number of new shares to be issued was set at 5,244,765 shares.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/240/530/original/Screen+Shot+2021-11-08+at+10.02.19+PM.png?1636426964" class="editor-image img-responsive" data-smartkarma-image-id="240530"></figure></section><div class="content-caption">(Source: KRX KIND)</div><p>As a result, these 5.24M new shares will get listed on November 17 at a capital increase rate of nearly 50% (and a shareholding dilution of 33%).</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Swap overview"}'>Capital increase rate</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Existing shares"}'>Pre-merger shares outstanding</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10554054}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>10,554,054</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": New shares"}'>: New shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5244765}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>5,244,765</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Post-merger shares outstanding"}'>: Post-merger shares outstanding</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15798819}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-2]C[0]+R[-1]C[0]">15,798,819</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'><strong>Capital increase rate</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.49694316515719933}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]/R[-3]C[0]"><strong>49.69%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholding dilution"}'><strong>Shareholding dilution</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.33197196575263}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-3]C[0]/R[-2]C[0]"><strong>33.20%</strong></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX KIND"}'>Source: KRX KIND</td></tr>
</tbody>
</table>

The merger between Green Cross Lab Cell (GCLC) and Green Cross Cell has been completed, and new shares will be listed on November 17, which is next Wednesday.(Source: KRX KIND)Considering the dissent rights exercised, the total number of new shares to be issued was set at 5,244,765 shares.(Source: KRX KIND)As a result, these 5.24M new shares will get listed on November 17 at a capital increase rate of nearly 50% (and a shareholding dilution of 33%).





Capital increase rate

Pre-merger shares outstanding
10,554,054


: New shares
5,244,765


: Post-merger shares outstanding
15,798,819


Capital increase rate
49.69%


Shareholding dilution
33.20%

Source: KRX KIND



Green Cross Lab Cell: Short-Selling Entry Timing Ahead of New Shares Listing on Nov 17

Green Cross LabCell

Green Cross Lab Cell: Short-Selling Entry Timing Ahead of New Shares Listing on Nov 17