Sale of Own Convertible Bonds Raises 1.9B KRW for Operations, Potential 1.14% Dilution Remains

Solux decided to sell its own 3rd series unsecured private convertible bonds with face value of 1.8B KRW (acquisition cost 1.9B KRW) to investor Kim Byung-rok for 1.9B KRW to secure operating funds
The conversion price of the sold bonds is 3,087 KRW per share, and if fully converted, 583,090 shares (1.14% of total shares) would be issued, raising dilution concerns for existing shareholders
The bonds were issued on March 19, 2025, mature on March 19, 2028, and include put option and call option terms
The sale price equals the acquisition cost, resulting in no gain or loss on disposal, with limited direct impact on financial statements
[AI Summary]This sale of own convertible bonds is primarily a short-term liquidity measure with a neutral immediate impact on shareholder value, but the potential 1.14% dilution upon conversion persists as a long-term investment risk