Phionx raises $7.38 million via third-party share placement

Phionx said Monday it will raise 10 billion won ($7.38 million) through a paid-in capital increase allocated to Trackcore Invest Co. The company will issue 6.139 million new shares at 1,629 won each, representing a 10 percent discount from the market price.

The board approved the measure on Aug. 31 to secure operating funds. Phionx plans to deploy 7 billion won of the proceeds in 2026 and the remaining 3 billion won in 2027.

The fundraising follows a collapse in the company's apparel wholesale division, where revenue plummeted from $11.84 million in 2024 to $3.49 million in 2025, falling further to $2 million in the first half of 2026. The company operates U.S. apparel wholesale under the name EK Line and runs Royal Greens, a cannabis retail chain in California.

For the same six-month period, Phionx reported total consolidated sales of $2.76 million and an operating loss of $1.65 million. The apparel unit accounted for the bulk of the deficit with a loss of $1.33 million, while the cannabis retail segment contributed an additional $90,000 loss, with other business lines adding $230,000 to the shortfall.

The new shares are scheduled to be listed on Oct. 8, with dividend rights applicable from Jan. 1.