Adjustment of 26th Convertible Bond Conversion Price: Reflecting Stock Merger and Market Decline, Shares Issuable Sharply Reduced but In-the-Money Risk Persists
OSUNG ADVANCED MATERIALS adjusted the conversion price of its 26th convertible bond (outstanding 10 billion won) from 1,715 won to 14,890 won.
This adjustment reflects the 10:1 stock merger (effective May 7, 2026) and a market price decline (1-month weighted average price of 1,489 won), and was made automatically without a separate board resolution.
The number of shares issuable upon conversion decreased sharply from 5,830,904 to 671,591 (approximately 88.5% reduction), lowering nominal dilution, but the conversion price (14,890 won) is close to the post-merger estimated stock price (approx. 14,480 won), increasing the likelihood of conversion.
Thus, the risk of equity dilution upon future stock price increases remains, and the adjustment may actually incentivize conversion.