Graphy Extraordinary General Meeting Approves Tenfold Increase in CB and BW Issuance Limit to 100 Billion Won, Potential Dilution Up to 40%

Graphy held an extraordinary general meeting on June 4, 2026 and approved a charter amendment to increase the issuance limit for convertible bonds and bonds with warrants from 10 billion won to 100 billion won, a tenfold increase.
The resolution passed with 90.3% approval from only 37.4% of total outstanding shares represented, meaning absolute approval was just 33.8%, indicating low shareholder engagement and governance concerns.
The new limit of 100 billion won represents 40.7% of the current market capitalization of approximately 245.8 billion won. With no disclosed plan for the use of proceeds, the expansion poses a significant dilution risk to existing shareholders upon conversion.
No shareholder return policies such as share buybacks or dividends were disclosed in conjunction with this decision.
[AI Summary]Graphy's tenfold increase in CB and BW issuance limits without clear capital allocation plans creates severe dilution risk. Low shareholder turnout and absence of strategic use of funds heighten the negative impact on shareholder value, likely pressuring the stock price in the near term.