Decision to issue 3rd unregistered, unsecured private convertible bond worth KRW 20 billion, coupon 2.0%, yield to maturity 4.0%, maturity May 27, 2029
Conversion price set at KRW 10,352 (100% of reference price), an 8.3% discount to current price of KRW 11,290; minimum adjusted price of KRW 7,247 (70% of initial)
New shares to be issued: 1,931,980 shares (17.30% of total outstanding shares of 11,165,299)
Use of proceeds: KRW 10B for facility investment (robot reducer production), KRW 6B for R&D operating funds, KRW 4B for acquisition of other securities (to be determined)
Put option: Bondholders can request early redemption every 3 months after 1 year from issuance (annual compound 4%)
Call option: Issuer can purchase up to 50% of bonds within 5 months after 1 year from issuance (annual compound 6% yield guarantee)
Collateral: Land/building in Incheon (first priority beneficiary rights, 130% limit), machinery transfer security, insurance claim pledge, and joint guarantee from K-humus (130% limit each)
Conversion price adjustments: downward to min KRW 7,247 (70% of initial), upward capped at max KRW 10,352
KOSDAQ Filing Information
Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)