Conversion of CB leads to 2.32% dilution, raising concerns over shareholder value erosion

Conversion exercise: On June 1, 2026, conversion of 5 billion won 2nd-series CB (conversion price 8,654 won) results in issuance of 577,767 new shares.
Dilution effect: 2.32% dilution relative to current outstanding shares of 24,791,195; new shares listing expected June 25, 2026.
Discount conversion: Conversion price is 26.6% below current market price (11,790 won), eroding existing shareholder value.
Financial impact: Debt-to-equity ratio improves as CB converts to equity, but short-term downward pressure on stock price due to increased supply.
Related disclosure: This CB originated from a perpetual CB issued in April 2025, modified in Jan 2026 to a 5 billion won CB with maturity Dec 2026; after this conversion, remaining balance is zero.
[AI Summary]The conversion of 5 billion won CB into equity improves the company's debt structure, but the conversion price at a deep discount to market price causes a 2.32% dilution, eroding existing shareholder value. This event is likely to exert downward pressure on the stock price in the short term, compounding the already high financial risks from heavy debt and low operational rates.