Moadata Decides to Issue 5 Billion KRW Convertible Bonds... Potential Dilution Reaches 89% Including Outstanding Convertibles, Increasing Investment Risk
Moadata issued the 14th series of unsecured private convertible bonds to raise 5 billion KRW for operating funds, with a coupon rate of 2.0%, yield to maturity of 4.0%, and maturity date corrected to June 30, 2029.
The conversion price is set at 1,553 KRW, determined as 100% of the weighted average stock price prior to the board resolution date, resulting in 3,219,575 new shares (8.85% of total outstanding shares). The conversion price is not subject to adjustment for market price declines.
The bonds are privately placed with a 1-year lock-up on conversion and split, and include put and call options. The call option allows the company or a designated third party to purchase up to 35% of the bonds.
Including all eight existing outstanding convertible bonds and warrants (total face value 38.2 billion KRW), the potential conversion shares amount to 32,417,307, representing 89.10% of current outstanding shares, posing significant dilution risk.
The issuance is a third-party allotment to Honor 2nd Investment Association, which has no recent financial statements, requiring careful investor judgment.
[AI Comprehensive Analysis]While this convertible bond issuance aims to raise operating funds, the combined potential dilution of 89% with existing outstanding bonds heavily burdens existing shareholders. The conversion price is above the current market price with no adjustment clause, making it unattractive for conversion without a stock price increase, emphasizing its short-term funding nature.
KOSDAQ Filing Information
Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)