Conversion of 3.01B KRW 13th Series CB into 4.05M Shares at 744 KRW, Severe Dilution Due to Deep Discount Conversion, Risk of Further Dilution from Remaining CBs

Lightron Fiber-Optic Devices has exercised conversion rights on 3.01B KRW of its 13th series unregistered private convertible bonds as of May 22, 2026, issuing 4,045,693 new shares (4.13% of outstanding shares).
The conversion price of 744 KRW represents an approximate 82% discount to the current market price of 4,100 KRW, leading to severe dilution of existing shareholder value.
This conversion increases the total shares outstanding to 101,947,232. The remaining balance of the 13th series CB stands at 3.44B KRW, convertible into 4,623,655 additional shares, posing further dilution risk.
The company has been continuously issuing new shares through multiple capital-raising activities including 15th and 16th series CBs and rights offerings, increasing long-term value erosion risk for shareholders.
[AI Summary]The deep-discount conversion exerts immediate downward pressure on the stock price, while the remaining convertible bonds and ongoing capital raisings create persistent dilution risk, making shareholder value preservation a key concern.