Conversion Price of 6th CB Adjusted Downward from 3,848 Won to 2,694 Won, Increasing Potential Dilution Risk for Shareholders
The conversion price of the 6th series unregistered private convertible bonds (CB) has been adjusted downward from 3,848 won to 2,694 won, a 30% decrease (effective date: March 11, 2026).
The adjustment, triggered by the decline in the market price per the bond's anti-dilution formula, sets the new conversion price at 70% of the original issue price.
As a result, the number of shares issuable upon conversion of the outstanding 7 billion won CB increases from approximately 1.82 million to 2.60 million, an increase of about 780,000 shares (43%).
Although the current stock price (1,575 won) still remains below the adjusted conversion price, limiting immediate conversion incentives, the lower conversion price amplifies potential dilution for existing shareholders should the stock price rise in the future.
This adjustment was executed automatically per the bond terms without a board resolution, and no additional shareholder protection measures are provided.
[AI Summary]The downward adjustment of the 6th CB conversion price increases the potential equity dilution for existing shareholders, despite the current stock price trading below the conversion price. The lower conversion price raises the risk of substantial dilution upon a future stock price recovery, and investors should monitor the company's capital structure and future financing plans.