Acquisition of KRW 2.8 Billion Convertible Bonds from Affiliate Aribio

Decision to acquire KRW 2.8 billion (23.41% of equity) in convertible bonds issued by affiliate Aribio for joint development of next-generation vaccines
CB terms: 0% coupon, 4% yield at maturity, maturity 2029-05-11, conversion price KRW 27,000 (adjustable to 10,000~25,000 based on H1 2026 new drug sales)
Investor put option: Early redemption exercisable every 3 months from May 2027, with redemption rates escalating from 104% to 111.43% by Feb 2029
Issuer call option: From 1 year to 3 years, issuer can buy back 30% of holdings every 3 months at 104% yield
Aribio financials: 2025 revenue KRW 11 billion, net loss KRW 31.2 billion, equity KRW 61.1 billion, worsening from 2024 net profit KRW 3.9 billion. Audit opinion unqualified
Acquisition size is relatively large at 23.41% of equity