NOUSBO Adjusts 3rd CB Conversion Price Down to 1,161 Won from 1,299 Won… Conversion Shares Increase by 398,000, Dilution Risk Grows
NOUSBO adjusted the conversion price of its 3rd unlisted convertible bond (CB) from 1,299 won to 1,161 won, a 10.6% decrease.
The adjustment was triggered by the decline in market price, applying the arithmetic average of the 1-month, 1-week, and latest weighted average stock prices (1,160.93 won) as the new conversion price as per the terms.
Consequently, the number of shares issuable upon conversion of the remaining 4.35 billion won CB increases from 3,348,729 to 3,746,770, an increase of 398,041 shares (approximately 11.9%), raising dilution concerns for existing shareholders.
The adjusted conversion price remains above the floor of 983 won (70% of the initial price of 1,299 won), and the effective date is May 27, 2026.
[AI Comprehensive Analysis]This conversion price adjustment is a contractual obligation due to the stock price decline, and it represents a negative event as it increases potential dilution without any new capital raising. Investors should be cautious as further downward adjustments are possible if the stock price does not recover.