Edge Foundry decides to issue 10 billion won convertible bonds for debt repayment; conversion price at 754 won raises dilution concerns
Edge Foundry decided to issue 10 billion won in 18th series unsecured private convertible bonds to Persimmon Tree Holdings Star Co., Ltd.
The conversion price is set at 754 won, approximately 14.6% above the current stock price (658 won). Upon conversion, 13,262,599 new shares (15.62% of outstanding shares) will be issued, raising significant dilution concerns for existing shareholders.
All 10 billion won proceeds will be used to repay existing debts: 5.4 billion won for repurchasing previously issued CB and 4.6 billion won for trade credit related claims.
The bonds carry a coupon and yield to maturity of 5% per annum, with a put option exercisable after one year from issuance.
Including two outstanding convertible bonds (total 25 billion won, conversion prices at 2,889 won and 1,582 won), total potential dilution reaches 33.47%.
The corrigendum reflects a change in payment and interest dates from June 4 to June 9, 2026.
[AI Summary]This CB issuance is focused on improving financial structure through debt repayment rather than securing growth capital; the 15.62% dilution from new shares weighs on existing shareholders. Considering outstanding CBs, potential dilution exceeds 30%, which may cap long-term stock price appreciation.
KOSDAQ Filing Information
Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)