Jinwoo Engineering Increases Pledged Shares via Extended and New Collateral Contracts for JNTC Loans
Jinwoo Engineering disclosed in its substantial shareholding report that its total stake of 38.1 million shares or 65.87% in JNTC remained unchanged, but shares under major contracts increased from 10.73 million to 12.48 million shares.
The increase was due to a new general loan of 12 billion KRW extended to JNTC by Hana Bank, for which Jinwoo Engineering provided 1.75 million JNTC shares as collateral, and an extension of the existing stock collateral loan agreement with SK Securities by three months.
JNTC plans to use the funds raised through the 30 billion KRW NH Investment & Securities corporate bond and the Hana Bank loan for new business investments and working capital, which is positive for growth funding, though the expanded collateral by Jinwoo Engineering slightly increases financial risk.
[AI Summary]The largest shareholder provided additional pledged shares for JNTC's new borrowings without issuing new shares, so no dilution occurred. The funds are earmarked for new business investment, expected to strengthen growth drivers, and counterparty risk is low given the involvement of reputable financial institutions such as Shinhan Investment, NH Investment & Securities, and Hana Bank.