- K Wave Media Ltd. (KWM) announced on **October 16, 2025**, that its key shareholders, including co-founders, will contribute **6.24 million ordinary shares** and lend an additional **1.55 million ordinary shares** to the company's treasury.  **[2000756_0001829126-25-008159_kwavemedia_ex99-1.htm:0]** 
- The combined **7.79 million ordinary shares** are valued at approximately **$25 million** based on the market price as of October 15, 2025.  **[2000756_0001829126-25-008159_kwavemedia_ex99-1.htm:0]** 
- These shares represent approximately **13% of the total issued and outstanding shares** and about **25% of the current public float**.  **[2000756_0001829126-25-008159_kwavemedia_ex99-1.htm:1]** 
- This initiative aims to **strengthen the balance sheet**, reduce dilution, improve EPS, and will be used for strategic purposes such as the K-IP STO platform, BTC purchases, strategic M&A, and debt reduction.  **[2000756_0001829126-25-008159_kwavemedia_ex99-1.htm:0]** **[2000756_0001829126-25-008159_kwavemedia_ex99-1.htm:1]**

K Wave Media Founders Gift and Loan Shares to Treasury

- K Wave Media (KWM) announced plans to develop an entertainment tokenization platform, which will offer **revenue-sharing tokens** for fractional ownership in films, concerts, and IP rights, along with **smart contract-based automated royalty distribution**.  **[2000756_0001829126-25-007784_kwavemedia_ex99-1.htm:0]** 
- As part of this initiative, **Galaxy Digital** made an approximately **$1 million equity investment** in KWM and received warrants for additional shares.  **[2000756_0001829126-25-007784_kwavemedia_ex99-1.htm:0]** 
- The investment involved the sale of **400,000 Ordinary Shares** for an aggregate purchase price of **$1,000,000** and warrants to purchase **200,000 Ordinary Shares** at an exercise price of **$2.75 per share**, with the transaction closing on **September 30, 2025**.  **[2000756_0001829126-25-007784_kwavemedia_6k.htm:1]** **[2000756_0001829126-25-007784_kwavemedia_ex99-2.htm:40]** **[2000756_0001829126-25-007784_kwavemedia_ex99-2.htm:41]**

K Wave Media Announces Entertainment Tokenization Platform and Strategic Investment

- K Wave Media (KWM) announced its **first acquisition** since its NASDAQ listing, acquiring a **55%** stake with managerial control in **Rabbit Walk**, a visual effects, AI-powered advertising, and 3D content studio.  **[2000756_0001829126-25-007012_kwavemedia_ex99-1.htm:0]** **[2000756_0001829126-25-007012_kwavemedia_6k.htm:1]** 
- The acquisition is expected to boost KWM's revenues by **25-30%** over the next **12 months**.  **[2000756_0001829126-25-007012_kwavemedia_ex99-1.htm:0]**  KWM's revenue in **2024** was **$58 million**, and Rabbit Walk recorded **$10.7 million** revenue in **2024**.  **[2000756_0001829126-25-007012_kwavemedia_ex99-1.htm:0]** 
- The initial consideration for the **55%** stake is **¥9 billion KRW** (~USD **$6.5 million**) of KWM's ordinary shares, with a potential additional **¥9 billion KRW** (USD **$6.5 million**) if Rabbit Walk achieves operating profit exceeding **¥1.2 billion KRW** (~USD **$800,000**) in **2025** or **2026**.  **[2000756_0001829126-25-007012_kwavemedia_ex99-1.htm:0]** **[2000756_0001829126-25-007012_kwavemedia_6k.htm:1]**