Parataxis Ethereum to Absorb Parataxis Korea... Resolving Delisting Risk and Concentrating on Business

Parataxis Ethereum will absorb and merge with its affiliate Parataxis Korea to restructure its governance and stabilize its finances.

According to the electronic disclosure (corrected report) by the Financial Supervisory Service on the 9th, the two companies held a board of directors meeting on the 7th and resolved that Parataxis Ethereum will absorb and merge with Parataxis Korea. Following the merger, Parataxis Ethereum will remain as the surviving entity, while the merged company, Parataxis Korea, will be dissolved and extinguished.

Both companies are listed on the KOSDAQ market, and the merger ratio has been calculated at 1 for Parataxis Ethereum to 0.2806763 for Parataxis Korea. The general shareholders' meeting to approve the merger is scheduled to be held on August 4, 2026. The merger date is October 1, and the scheduled listing date for the new shares is October 23. Due to the progression of this merger procedure, trading of Parataxis Korea's shares will be suspended from September 29 to October 22.

Of particular note is that the merged entity, Parataxis Korea, has recently been designated as an administrative issue, meaning it may become subject to a substantive review for listing eligibility, and delisting could occur depending on the Korea Exchange's judgment. According to the disclosure, if Parataxis Korea is delisted and converted into an unlisted company before the completion of the merger, there is a possibility that contract conditions could change, such as the merger ratio being recalculated in accordance with relevant laws and evaluation criteria, or the execution of the merger being delayed or suspended.

Regarding the purpose of this merger, the company stated it is for "dualized business concentration among affiliates and financial stabilization through governance restructuring," and plans to prioritize the protection of shareholder value by preemptively eliminating the uncertainty of the time-consuming listing eligibility review process. In addition, the company plans to reduce unnecessary redundant costs and reorganize its digital asset financial strategy around the Ethereum ecosystem to enhance management efficiency and business competitiveness.

As both companies belong to the 'Parataxis Holdings LLC' group, it is forecasted that even if the largest shareholder of the surviving company changes from the existing 'Parataxis Korea Fund IV LLC' to 'Parataxis Holdings LLC' after the completion of the merger, there will be no meaningful change in management control.

The period for exercising appraisal rights by dissenting shareholders to the merger is from August 4, the date of the general shareholders' meeting, to August 24, and the expected purchase price is 577 won. However, if the total amount of the appraisal rights exercised by the shareholders of the merging parties exceeds 20 billion won, this merger contract may be terminated.