Moadata Corrects 7B Won CB Issuance Disclosure: Reduced Collateral and Massive Potential Dilution (46.49%) Raise Concerns for Shareholder Value
Moadata corrected the collateral provision for its 9th unsecured private convertible bond (7B won). Originally, 2,244,268 shares of subsidiary Moadata Life Plus and 5B won of its own CB were pledged; after correction, only 400,000 shares of Moadata Life Plus and the CEO's joint guarantee remain.
The conversion price is 1,468 won (21% premium to current price of 1,213 won), with a floor adjustment to 1,028 won (70% of initial). A drop in stock price could lower the conversion price, increasing dilution risk.
The CB converts to 4,768,392 shares (13.80% of issued shares). Combined with existing convertible instruments (6th-8th series, 11,298,212 shares), total potential dilution reaches 46.49% of the then outstanding shares (34,556,562).
Funds raised: 5B won for debt repayment (redeeming 7th CB) and 2B won for operating capital (new business), essentially refinancing existing debt.
The issuer holds a call option to buy back up to 45% of principal (max 3.15B won) from the underwriter (SangSangin Savings Bank), paying 94.5 million won in premium. Bondholders can exercise a put option starting one year after issuance.
[AI Summary]This filing is merely a correction of collateral terms for a 7B won CB issuance, but the potential dilution from this CB plus existing convertible instruments exceeds 46% of total shares, posing a significant threat to shareholder value. Moreover, 71% of proceeds go to debt repayment, limiting growth impact, and the call option structure may add financial burden.
KOSDAQ Filing Information
Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)