Cube Entertainment does not want to let go of (G)I-DLE at any cost!
The agency is going above and beyond as it prepares to negotiate a contract extension with (G)I-DLE. It is lately making headlines with its recent large-scale fundraising efforts.
According to the Financial Supervisory Service’s electronic disclosure system, Cube Entertainment announced on July 23 that it will issue 766,870 new shares through a paid-in capital increase, with co-CEOs Kang Seung Gon and Jeong Cheol each acquiring 383,435 shares for 13,040 won per share.
This move is expected to raise approximately 10 billion (9,999,990,000) won in operating funds.
On July 23, Cube Entertainment also announced the issuance of 16.5 billion won worth of convertible bonds, which can be converted into company stocks under certain conditions. This move will result in the issuance of an additional 1,258,773 shares of common stock.
Combined with the previously announced 10 billion won short-term loan and the 10 billion won raised through the new share issuance, Cube Entertainment is injecting a total of 36.5 billion won into its finances.
Cube Entertainment’s recent large-scale fundraising efforts, totaling 36.5 billion won, are reportedly aimed at securing operating capital. Industry insiders speculate that this move is strategically timed to prepare for the upcoming contract renewal with their flagship artist, (G)I-DLE.
As (G)I-DLE approaches their 7th anniversary since debut, their contract is expiring soon and negotiations are set to begin.
Their 2024 comeback albums 2 and I SWAY achieved remarkable sales figures, selling 1.5 million and 1.02 million copies in the first week of release respectively.
(G)I-DLE is set to embark on their third world tour, spanning 14 cities globally, kicking off in Seoul next month. The tour will then make stops in Hong Kong, Tokyo, and various cities in North America, Australia, and Asia. With tickets already sold out for the Korean, Hong Kong, and Japanese shows, expectations are high for a successful tour.
Not to mention, (G)I-DLE has contributed significantly to the growth of Cube Entertainment and it is no surprise that the label is going to extreme lengths for contract renewal.
Without (G)I-DLE under their umbrella, it would be hard for Cube Entertainment to maintain its performance. Other artists under the label include PENTAGON, LIGHTSUM, NOWADAYS, Jung Ji Woo, Lee Eun Ji, and more.
In recent months, many artists have left Cube Entertainment which makes them dependent on (G)I-DLE even more. Artists that have recently left the agency include Yoo Seon Ho, all BTOB members, several PENTAGON members, and Jo Kwon.