AKOM · Aerkomm Inc.

Aerkomm Inc. disclosed the completion of a statutory merger under Taiwan's Business Mergers and Acquisitions Act, where subsidiary Aerkomm Taiwan Inc. absorbs Ejectt Inc. to enhance operational efficiency and integrate resources. The 1:1 share exchange ratio, validated by audited financials as of December 31, 2023, and an independent fairness opinion from April 29, 2024, results in Aerkomm Taiwan issuing exactly 65,113,314 new common shares matching Ejectt's issued shares (including vested employee options), boosting total issued shares to 115,113,314 and paid-in capital from NT$500 million to NT$1,151,133,140 while expanding authorized capital to NT$2 billion. This fully dilutive transaction transfers all Ejectt assets, liabilities, contracts, and employee continuity (with service years preserved) to Aerkomm Taiwan without additional cash consideration, positioning it for streamlined operations. Shareholder approval was targeted for May 23, 2024, with a tentative effective date of June 27, 2024, adjustable by chairmen; creditor protections include 30-day objection periods. Representations confirm no material undisclosed liabilities, disputes, or restrictions, with Aerkomm Taiwan bearing merger taxes and costs. For investors, this consolidates control under Aerkomm Taiwan, potentially simplifying group structure but increasing share count and dilution for existing holders.