Conversion Price Drop from 4,080 Won to 2,856 Won Raises Dilution Concerns
Conversion Price Adjustment: The conversion price of the 8th unregistered private convertible bond was reduced by 30% from 4,080 won to 2,856 won, increasing the number of convertible shares by approximately 42.8% (262,605 shares) from 612,745 to 875,350
Reason for Adjustment: Repricing due to stock split and market price decline. The arithmetic average of weighted average stock prices (2,637 won) fell below the previous conversion price (4,080 won), triggering the minimum adjustment limit (70% of initial conversion price, 2,856 won)
Impact on Shareholders: Full conversion of the 2.5 billion won bonds would result in additional dilution of about 5.5% relative to total outstanding shares (15,856,381), raising concerns over ownership dilution and downward pressure on the stock price
Other Details: The adjustment was made automatically without a separate board resolution, effective from June 1, 2026
[AI Summary]The downward conversion price adjustment creates potential equity dilution, negatively affecting short-term stock price, but the risk is partially limited by the floor of 70% of the initial conversion price. Investors should monitor the likelihood of conversion and dilution effects
KOSPI Filing Information
Filing: Adjustment of Conversion Price, Exercise Price of Stock Subscription Rights, and Exchange Price (Notice of Disclosure)