KOYJ Completes 1 Billion KRW CB Issuance at Premium Conversion Price of 3,190 Won for Operating Funds and M&A

KOYJ completed the issuance of 1 billion KRW unregistered, interest-bearing, unsecured private convertible bonds (3rd series) on June 1, 2026, following a board resolution on May 22, 2026.
The conversion price is set at 3,190 won, approximately 39% above the recent stock price of 2,300 won, with the issuance aimed at securing performance accountability for the acquisition of E-Kyung Inc. by the target investor, Ki-young Lee.
Upon conversion, 313,479 shares (5.84% of total outstanding shares) will be issued, resulting in a total potential dilution of 6.20% (including no existing outstanding bonds).
All proceeds will be used for operating expenses (labor and material costs). Investors should monitor the acquisition progress and fund usage.
[AI Summary]The completion of this small-scale premium CB issuance poses limited immediate dilution risk. However, the purpose of raising operating capital does not directly enhance growth, and future stock price appreciation could trigger conversion, leading to dilution. Thus, while short-term impact is mild, shareholders should watch for potential changes in management control and efficient use of funds.