Early Redemption and Cancellation of Partial 2nd Series Convertible Bonds, Reducing Potential Dilution Risk
Approximately 794.3 million KRW face value of the 2nd series convertible bonds (total issuance 5 billion KRW) were early acquired due to bondholders' put option exercise and will be cancelled.
The acquisition cost of 916.5 million KRW (including principal and interest) was paid from internal funds, reducing the remaining convertible bonds face value to about 4.2057 billion KRW.
The current conversion price is 19,450 KRW, higher than the current stock price of 16,760 KRW, so conversion is not attractive currently, but the early cancellation partially alleviates future dilution risk.
This move is positive for existing shareholders as it reduces potential equity dilution and improves the company's capital structure.
[AI Summary]Lunit's early redemption and cancellation of a portion of its 2nd series convertible bonds reduces potential dilution risk. The move, funded by internal cash, improves the capital structure and is positive for existing shareholders. However, only about 15.9% of the total issuance was cancelled, meaning residual dilution risk from the remaining 42.06 billion KRW in convertible bonds persists.
KOSDAQ Filing Information
Filing: Acquisition Of Convertible Bonds (Including Overseas Convertible Bonds) Before Maturity After Issuance (2nd Series)