[Newsen] Cube Entertainment to enter KOSDAQ… Plans for diversification

(May contain inaccuracies)

Cube Entertainment will be entering the KOSDAQ market.

On May 28th, Cube Entertainment will be entering the stock market through SPAC2*. As an affiliate company of iHQ, Cube Entertainment  will be obtaining funds from shareholders with the main aim to enhance their music business, as well as to build an undisputed global KPOP brand.

The merger consists of 1,578,500 Won from SPAC2, and 4,503,000 Won from Cube Entertainment (at a ratio of 1:3.825).

Upon signing of merger agreement today, a general meeting will be held on September 12th for the merger, and the merger date has been set to be on October 17th.

Valued at 15 billion Won, Cube Entertainment plans to improve its financial structure, and to strengthen its overseas business as well as production process through this listing.

Founded in 2008, Cube Entertainment has been a notable company, often being mentioned together with SM, YG and JYP, as one of the Big 4 of the KPOP industry. Currently, Cube Entertainment houses BEAST, 4minute, G.NA, BTOB, unit group Trouble Maker, actress Cho SeoHa, Oh Yeri, gagman Kim Kiri and many more artists. Its wholly-owned subsidiary Cube DC has Rain, Roh JiHoon, Shin JiHoon and actor Kwak SeungNam as part of their promising list of artists.

This year, BEAST will be releasing a mini album and hold Japanese activities. 4minute had also been actively promoting around Europe. Together with its cooperation with Universal Music, more than 4 billion Won as operating profit is expected from this year’s performance.

The CEO of Park ChungMin expressed, “To ensure a rapid growth for a dynamic entertainment business, we have decided to go on with the merger” and, “With this listing, Cube will gain a foothold in the music industry, being global key players like Samsung and LG,” he revealed.

Jeon YongJoo, CEO of iHQ further aspired, “I believe that this is the best opportunity for us to be a global business, along with Cube Entertainment. I’m anticipating larger market expansion for the Hallyu industry we will get through this decision.”

*Special-purpose Acquisition Company:

A special purpose acquisition company (SPAC) is a corporation formed by private individuals to facilitate investment through an initial public offering (IPO). The proceeds are used to buy one or more existing companies.

When money is raised by an IPO for a SPAC, the funds are placed into a trust until the purchase is made or a predetermined period of time elapses. If the transaction and associated legal formalities are not completed by the deadline, the money is returned to the investors with allowances for bank and broker fees. 

Please take out with full credits

Trans: loveindacube.wordpress.com

Source: Newsen

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s