Edge Foundry Issues 10 Billion Won Convertible Bonds for Debt Repayment... Conversion Price at 754 Won, Potential Dilution of 15.6% (33.5% Including Existing CBs)

Decision to issue 10 billion won in 18th unsecured private convertible bonds, payment date June 4, 2026, maturity June 4, 2029, coupon and yield 5% each
All proceeds (10 billion won) will be used to repay existing debts: 5.4 billion for early redemption of existing CBs and 4.6 billion for trade credit compensation claims
Conversion price set at 754 won, approximately 7.7% above current stock price (700 won), but subject to downward adjustment every 3 months based on market price, with a floor of 528 won (70% of initial conversion price)
This issuance could result in up to 13,262,599 new shares (15.62% of outstanding), and combined with existing outstanding CBs (15th and 16th series), total potential dilution reaches 26,205,672 shares (33.47%)
[AI Comprehensive Analysis]This CB issuance is aimed at repaying existing debt rather than funding growth, offering limited financial improvement. Although the conversion price is above the current stock price, the downward adjustment mechanism and accumulated CB overhang may cap long-term share price appreciation.