StageX has disputed a government announcement regarding canceling their frequency allocation, claiming there were errors. They maintained that they had planned to receive investments from consortium shareholders after the frequency allocation, as stated in their plan, and that the composition of shareholders and their shareholding ratios have not deviated from the original plan.
On June 19, StageX stated, “We specified the investment timing for consortium investors in the frequency usage plan and set the initial capital of 205 billion won ($148 million) as a prerequisite for securing the status of a new operator (frequency allocation approval). We had planned to faithfully implement the capital contribution after obtaining the frequency allocation approval.”
The company emphasized, “The capital procurement plan specified in the frequency utilization plan was first submitted on December 19 last year. Following the Ministry of Science and ICT’s request for supplementation on December 27, we submitted additional documents on January 4 this year and have made no changes since.”
Previously, the Ministry of Science and ICT announced that StageX had failed to pay $148 million in capital by the May 7 deadline, which was the reason for the cancellation of the frequency allocation. The ministry also stated that only Stage Five, the parent company, among the six significant shareholders of StageX, who own more than 5%, had fulfilled the capital contribution.
In response, the company argued that four companies, including Stage Five, among the seven planned investment participants, participated in capital raising to pay for the first installment of the frequency fee.
StageX said, “Stage Five, Douzone Bizon, and Yanolja participated as shareholders, and Shinhan Investment Corp also participated in the issuance of convertible bonds (CB) to pay the frequency fee, separate from the authorized investment.” They explained that four places, including Stage Five, participated in capital raising to pay the first installment of the frequency fee, which is $31 million.
However, it is difficult to see the capital-contributing shareholder announced by the government and the frequency fee participant mentioned in StageX’s explanatory materials as the same.
The company argued, “There is no problem with StageX’s shareholder composition and stock ownership ratio as of May 7, as we received prepayments from some prospective participants to pay the first installment of the frequency fee. The Ministry of Science and ICT’s claim that we violated the commitments regarding share sales prohibition and faithfully implemented the capital raising plan is erroneous.”
Meanwhile, the Ministry of Science and ICT is rearranging the scheduled hearing from June 25 to June 27. The ministry said, “Considering the opening of the standing committee of the National Assembly, the schedule of the hearing presiding officer, and the business operator, we plan to proceed on June 27. If there are changes in the schedule, we will proceed as originally planned.”
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