K Wave Media Issues Corporate Update Highlighting SEC Clearance, Strategic Acquisition, and Financial Restructuring Progress

Rhea-AI Summary

K Wave Media (Nasdaq: KWM) announced SEC clearance of the Anson Funds resale registration statement, a strategic acquisition pending closing, and progress on its K-IP STO platform and Bitcoin Treasury Plan.

Key points: SEC clearance reopens capital-raising and allows resumption of the BTC accumulation plan; the Rabbit Walk acquisition could add $20 million (≈25–30%) revenue over 12 months and brings clients including Samsung and LG; 44 IP holders signed MOUs for the K-IP STO platform expected in Q2 2026; Galaxy Digital has invested, signaling institutional interest.

Positive

• Acquisition could add ~$20M revenue (+25–30%) in 12 months
• SEC clearance for Anson Funds resale registration statement restores capital options
• 44 IP holders executed MOUs for K-IP STO platform (launch expected Q2 2026)
• Galaxy Digital investment indicates institutional confidence

Negative

• Rabbit Walk closing depends on pending resale registration SEC clearance
• Bitcoin Treasury Plan execution was delayed by a >43-day government shutdown

Key Figures

Projected revenue boost 25–30% Expected Rabbit Walk impact on KWM revenues over next 12 months

Incremental revenue approximately $20 million Estimated 12-month revenue contribution from Rabbit Walk acquisition

Government shutdown length more than 43 days Duration cited as delaying Bitcoin Treasury Plan

IP holders with MOUs 44 IP holders Committed to use K-IP STO Platform upon launch

Platform launch timing Q2 2026 Expected launch of K-IP STO Platform

Market Reality Check

$0.4100 Last Close

Volume Volume 789,901 is below the 20-day average of 2,526,789, suggesting limited pre-news participation. low

Technical Shares at $0.4277 are trading below the 200-day MA of $2.61 and sit 94.96% under the 52-week high.

Peers on Argus

While KWM was down 11.63% before this update, peers were mixed: CPOP up 4.04%, MPU up 6.96%, GAIA down 6.59%, NIPG down 3.64%, STRZ down 1.68%, pointing to stock-specific pressure rather than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 04	CFO appointment	Positive	-8.9%	New CFO with capital markets experience to support expansion and compliance.
Oct 16	Share gift/loan	Positive	-18.6%	Founders contributed and lent <b>7.79M</b> shares to treasury for restructuring.
Sep 29	Tokenization platform	Positive	-2.7%	Announcement of entertainment tokenization platform with <b>$1M</b> Galaxy investment.
Sep 05	Fund mandate win	Positive	+9.4%	Subsidiary selected to manage <b>$28M</b> IPTV fund backed by major operators.
Sep 02	Rabbit Walk acquisition	Positive	+23.7%	First post-listing acquisition adding AI/VFX capabilities and forecast revenue lift.

Pattern Detected

Recent positive corporate and strategic news has often seen selling pressure, though major strategic wins like the Rabbit Walk acquisition have produced strong upside.

Recent Company History

Over the last six months, K Wave Media has focused on strategic growth and financial restructuring. On Sep 2, 2025, it agreed to acquire a controlling stake in Rabbit Walk, with that announcement followed by a 23.7% price gain. Subsequent news on an IPTV fund mandate and a $28 million vehicle also saw a positive move of 9.42%. However, announcements on a $1 million Galaxy Digital investment, founders gifting and lending 7.79 million shares to treasury (about 13% of shares), and the CFO appointment all saw negative 24-hour reactions, underscoring mixed investor reception to restructuring and governance updates.

Market Pulse Summary

This announcement highlights SEC clearance for an Anson Funds resale registration statement, expected closing of the Rabbit Walk acquisition, and continued progress on the K-IP STO platform. Management points to a projected 25–30% revenue lift (around $20 million) from Rabbit Walk and MOUs with 44 IP holders ahead of a planned Q2 2026 platform launch. Investors may monitor how quickly Rabbit Walk closes, how the Bitcoin-related treasury plan resumes, and whether the STO platform reaches launch milestones on time.

Key Terms

resale registration statement regulatory

"SEC clearance for the Anson Funds resale registration statement, opening the door..."

A resale registration statement is a document filed with regulators that allows existing shareholders to sell their shares to the public. It provides the necessary legal approval and information for these shares to be resold on the market, helping to increase the availability of shares for trading. For investors, it signals that shares held by current owners can be offered for sale, potentially affecting share prices and market liquidity.

bitcoin treasury plan financial

"restoring momentum behind its Bitcoin Treasury Plan, which had experienced delays..."

A bitcoin treasury plan is a company policy to hold some of its cash or reserves in bitcoin instead of traditional currency or short-term investments. Think of it like a business choosing to keep part of its savings in gold rather than a bank: it can boost upside if bitcoin rises but also adds price swings, accounting changes and regulatory or tax implications. Investors watch such plans because they change the firm’s risk profile, liquidity and potential returns.

memorandum of understanding technical

"44 leading IP holders have executed a Memorandum of Understanding (MOU) with the Company..."

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

security token offering regulatory

"to utilize the IP Security Token Offering (STO) Platform upon its launch..."

A security token offering is when a company sells digital tokens that represent ownership, debt, or profit rights in a company or asset, using blockchain technology to record those claims. Because these tokens are treated as regulated securities, investors get legal protections and required disclosures, while also benefiting from features like easier trading and fractional ownership — similar to buying a share that can be split and moved more quickly.

btc financial

"resume its BTC accumulation as part of its digital treasury strategy."

BTC is the common ticker and shorthand for Bitcoin, a digital currency that exists on a decentralized computer network instead of being issued by a government or bank. Investors care about BTC because its market price signals demand for that asset, can swing sharply like a volatile commodity, and can influence portfolio risk, market sentiment, and companies with exposure to cryptocurrencies—similar to how oil prices affect energy markets.

AI-generated analysis. Not financial advice.

NEW YORK and SEOUL, South Korea, Dec. 18, 2025 (GLOBE NEWSWIRE) -- K Wave Media (Nasdaq: KWM), a Korean cultural innovation and digital asset company, today provided a corporate update summarizing recent milestones and announcing a significant regulatory achievement that strengthens its capital strategy and growth trajectory.

SEC Clearance on Anson Funds Registration Statement

K Wave Media has secured SEC clearance for the Anson Funds resale registration statement, opening the door to additional capital-raising opportunities. K Wave Media believes that this clearance represents a pivotal step in reinforcing the Company’s financial flexibility and restoring momentum behind its Bitcoin Treasury Plan, which had experienced delays in recent months due to the government shutdown, which lasted for more than 43 days. K Wave Media’s management team believes this achievement will accelerate growth initiatives and enhance shareholder value.

Strategic Acquisition Expands Capabilities - Expected to close soon

On September 2, 2025, K Wave Media announced its first post-listing acquisition when it acquired a majority stake in Rabbit Walk, a distinguished visual effects, AI-powered advertising and 3D content studio. The acquisition of Rabbit Walk could boost its revenues by 25–30%, or approximately $20 million, over the next 12 months. The acquisition adds world-class technology companies such as Samsung, LG, TCL, and Hisense as new K Wave Media clients and strengthens K Wave Media’s creative portfolio, enhances content distribution reach, and reinforces financial discipline through a performance-based share issuance mechanism. The acquisition of Rabbit Walk deal is expected to close within the next several weeks, as the applicable resale registration statement is pending SEC clearance.

Continuing Strategic Execution

• K-IP STO Platform: Advancing development of a new financial infrastructure to tokenize profit rights of K-content IP, enabling fans and investors worldwide to participate in production and share profits. Now, a total of 44 leading IP holders have executed a Memorandum of Understanding (MOU) with the Company to utilize the IP Security Token Offering (STO) Platform upon its launch, which is expected during the second quarter of 2026.
• Bitcoin Treasury Plan: With SEC clearance secured for Anson Funds registration statement, KWM is positioned to resume its BTC accumulation as part of its digital treasury strategy.
• Partnerships & Investment: Galaxy Digital’s recent investment in K Wave Media underscores institutional confidence in K Wave Media’s vision of combining cultural content with digital finance.
  

Leadership Commentary

“Our ability to secure SEC clearance on the Anson Funds registration statement will help kickstart our additional capital raising opportunities,” said Ted Kim, CEO of K Wave Media. “Together, with our September acquisition of Rabbit Walk and more exciting M&A opportunities on the horizon, we are building a stronger foundation to accelerate the overall growth of the Company, global spread of the K-IP STO platform, and accumulate more BTC. We remain committed to executing our vision and delivering long-term value to our shareholders.”

About K Wave Media

K Wave Media (KWM) is a publicly listed entertainment and Bitcoin treasury company dedicated to creating, distributing, and monetizing high-quality content across multiple platforms. Since going public in 2025, KWM has focused on strategic growth initiatives, including acquisitions, digital platforms, and digital asset treasury management.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking.

These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication and on the current expectations of K Wave Media’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of K Wave Media. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions.

If any of these risks materialize or K Wave Media’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that K Wave Media does not presently know, or that K Wave Media currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect K Wave Media’s current expectations, plans and forecasts of future events and views as of the date hereof. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved.

You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein and the risk factors of K Wave Media described in K Wave Media’s Form 20-F initially filed with the SEC on May 14, 2025, as amended, including those under “Risk Factors” therein. K Wave Media anticipates that subsequent events and developments will cause its assessments to change. However, while K Wave Media may elect to update these forward-looking statements at some point in the future, K Wave Media specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing K Wave Media’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Media Contact:

Investor Relations: info@kwavemedia.com

Evan Sneider: esneider@redroosterpr.com

FAQ

What did K Wave Media (KWM) announce on December 18, 2025 regarding SEC clearance?

KWM announced SEC clearance of the Anson Funds resale registration statement, which it says reopens capital-raising options.

How much revenue could Rabbit Walk add to KWM after the acquisition?

KWM estimates Rabbit Walk could boost revenue by approximately $20 million, or 25–30%, over the next 12 months.

When is K Wave Media’s K-IP STO platform expected to launch and how many IP holders have signed MOUs?

The K-IP STO platform is expected in Q2 2026, and 44 leading IP holders have executed MOUs to use the platform.

Does KWM plan to resume its Bitcoin Treasury Plan after the announcement?

Yes; KWM said SEC clearance positions it to resume BTC accumulation as part of its digital treasury strategy.

Is the Rabbit Walk acquisition already closed and what could delay closing?

The acquisition is expected to close within several weeks but is contingent on clearance of an applicable resale registration statement.

What does Galaxy Digital’s investment mean for K Wave Media shareholders?

KWM described Galaxy Digital’s investment as institutional backing that supports its strategy combining cultural content with digital finance.