Decision to issue 10 billion won convertible bonds with conversion price of 12,474 won (premium to current price)

BARREL decided to issue 10 billion won worth of unregistered, unsecured private placement convertible bonds (1st series)
Conversion price set at 12,474 won, which is 257.5% higher than the current stock price of 3,490 won
Maturity date June 7, 2027, with 0% coupon and 2% yield to maturity
All proceeds to be used for operating expenses (R&D, logistics, marketing, etc.)
Conversion period from June 7, 2022 to May 7, 2027; if converted, 801,667 shares will be issued (9.23% of outstanding shares)
Conversion price can be adjusted down to a minimum of 8,732 won (70% of initial price) in case of market decline
Bondholders have a put option starting December 7, 2023 (every 3 months, early redemption rate of 2% compounded annually)
Issuer holds a call option for up to 28.36% (2.836 billion won) of the bonds (from June 2022 to December 2023, max 2 times)
Potential share increase including outstanding convertible bonds is 10.17%

Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)
Company: BARREL (267790)
Submission: BARREL Co., Ltd.
Receipt: 05-22-2026