YulChon Completes 10B Won Convertible Bond Issuance - No Change from Initial Decision, Dilution Risk Persists

YulChon completed the issuance of 10 billion won in 7th series unregistered private convertible bonds on June 1, 2026, confirming the initial decision.
Conversion price is 1,499 won, a 27.6% premium over the decision date close (1,175 won) and significantly above current price (1,068 won).
The convertible shares represent 6,671,114 shares, or 21.74% of outstanding shares, indicating substantial potential dilution.
Proceeds: 7 billion won for facility investment in Poland and Hwaseong plants, 3 billion won for working capital.
Zero coupon, zero yield maturity, put option after 2 years, call option after 1 year, conversion restricted for 1 year.
Conversion price adjustable with no floor.
[AI Summary]This CB issuance involves massive dilution (21.74%) but funds growth-oriented facility expansion. The premium conversion price mitigates immediate dilution risk, but downside price adjustments could increase dilution. Zero interest cost reduces financial burden.