Cancellation of 8.375 Billion Won in 2nd Convertible Bonds Eliminates Potential Dilution of 593,761 Shares (approx. 2.4%), Boosting Shareholder Value
JOYWORKS&Co resolved on May 26, 2026, to cancel all 8.375 billion won in face value of its own 2nd unregistered, unsecured private convertible bonds held by the company.
The bonds were acquired through agreements with bondholders from September 2025 to May 2026. Based on the conversion price of 14,105 won, the cancellation eliminates 593,761 potential shares (approx. 2.4% of total outstanding shares).
This reduction in potential dilution eases concerns over existing shareholders' value dilution and is expected to improve future earnings per share (EPS).
The company also stated that it is proceeding with the cancellation of electronic registration for the entire 20 billion won face value of the 2nd convertible bond issue, hinting at possible additional cancellation of remaining holdings.
Unlike a share buyback, this cancellation of self-held convertible bonds reduces potential dilution without cash outflow, making it an effective shareholder return policy.
[AI Comprehensive Analysis]This disclosure is a strong positive catalyst, directly enhancing existing shareholder value by reducing potential dilution by approximately 2.4%. The voluntary cancellation, despite the market price (2,210 won) being far below the conversion price (14,105 won), clearly demonstrates management's commitment to shareholder returns.
KOSDAQ Filing Information
Filing: Other Management Matters (Voluntary Disclosure): Decision on Cancellation and Extinguishment of Own Bonds (2nd Convertible Bonds)