Sammi Metal Products issues 30B KRW Convertible Bonds for Facility and Operating Funds, Conversion Price at 13,043 KRW, Potential Dilution of 10.36% of Outstanding Shares
Sammi Metal Products decided to issue 30 billion KRW worth of 4th series unregistered, non-interest-bearing, unsecured private convertible bonds (CB) with zero coupon and zero maturity interest rate, maturing on June 10, 2031.
The conversion price is set at 13,043 KRW, approximately 9.7% above the current market price of 11,890 KRW as of May 29, 2026. The conversion period runs from June 10, 2027 to May 10, 2031.
Proceeds will be used for facility investment (15 billion KRW for building and machinery purchases) and operating funds (15 billion KRW for raw material and labor costs).
Upon full conversion, 2,300,084 new shares will be issued, representing 10.36% of the 22,192,012 outstanding shares. Including an existing CB (1.57 billion KRW), the total potential dilution ratio reaches 14.24%.
The CB includes a call option allowing the company or a designated third party to purchase up to 30% (9 billion KRW) of the CB between 1 year (June 10, 2027) and 2.5 years (December 10, 2028) after issuance, and a put option allowing early redemption every 3 months starting from 2.5 years after issuance (December 10, 2028).
Investors include 26 institutions such as DB Securities and Korea Investment-Skywalk Mezzanine New Technology Investment Association No.1, mostly newly formed in 2026 with no recent financial statements.
[AI Summary]This CB issuance aims to secure funds for facility and operating purposes, but the conversion price is only slightly above the current market price, making dilution risk materialize if the stock price rises. The potential dilution of 14.24% (including existing CB) could negatively impact existing shareholders' value.
KOSDAQ Filing Information
Filing: Report On Major Events (Decision On Issuance Of Convertible Bonds)