Min Hee-jin notifies Hive of the put option event...Expected to be worth KRW 26 billion

ⓒYonhap News Agency

Min Hee-jin, former CEO of Adore, recently notified Hive that he would exercise put options (stock purchase claims) for Adore's shares.

According to the music industry on the 14th, former CEO Min notified Hive of the put option event earlier this month. The put option is one of the key elements of former CEO Min's inter-shareholder contract with Hive, drawing keen attention to the background he said he would exercise it in a surprise move.According to the shareholder agreement signed by former CEO

Min, he can receive 75% of his ownership from Hive, multiplied by 13 times the average operating profit of the previous two years.

The base year for calculating put options is 2022-2023. Adore's operating profit during this period was -4 billion won (4 billion won in operating loss) in 2022, the year Newzins debuted, and 33.5 billion won in 2023. If former CEO Min exercised his put option next year and the calculation period was from 2023 to 2024, he would have been more likely to receive more money.

According to the Odor audit report released in April, former CEO Min held 573,160 shares (18%) in Odor, and based on this, he could receive nearly 26 billion won from the put option event.Former Vice Chairman Shin Moor and former director Kim, who are close to former representative

Min, also notified Hive on the same day that they would exercise their put options.It is highly likely that former representative of

Min will go through a legal battle until he actually holds a large amount of money through the exercise of put options. In July, Hive notified former CEO Min of the termination of the contract between shareholders, which is the basis for the put option, citing damage to trust, but former CEO Min refused to admit that the contract was still valid.

Meanwhile, on the 13th, Newzins has sent a certificate of content to Adore that it will terminate the exclusive contract if all serious violations of the exclusive contract are not corrected within 14 days.