Issuance of 50.8 Billion Won Convertible Bonds to Repay Affiliate Debt... Dilution Risk Soars as Conversion Price Can Be Adjusted Downward

The company will issue 50.8 billion won in unsecured private convertible bonds (20th series) to repay 50.8 billion won in borrowings from its affiliate, Aptocrome.
The initial conversion price is 3,778 won (a 9.5% premium to the current price of 3,450 won), but quarterly reset (refixing) is allowed, with a floor of 2,645 won (70% of initial). A drop in stock price could lower the conversion price, flooding the market with shares.
If fully converted, the new shares would total 13,446,267, representing 93.3% of the current outstanding shares (14,412,374), causing massive dilution.
Combined with existing convertible bonds (16th-19th series, balance 128 billion won), total potential conversion shares reach 37,873,359, or 262.78% of current shares, severely diluting shareholder value.
The issuance merely converts existing affiliate debt into equity without raising new funds, failing to improve cash flow or fund growth.
[AI Comprehensive Analysis]This convertible bond issuance involves massive equity dilution while the proceeds are used only to repay affiliate debt, not for investment or operations. The refixing clause creates persistent downward pressure on the stock price, and existing shareholders face severe value erosion.