UNISON Decides to Issue 32 Billion Won Convertible Bonds High Dilution of 11.5% and Uncertain Fund Usage
UNISON decided on June 8, 2026 to issue 32 billion KRW of 18th series unregistered non-guaranteed private convertible bonds. The conversion price is 1,071 KRW per share and the number of new shares upon conversion is 29,878,618 shares representing 11.51% of total outstanding shares.
The funds raised are allocated to facility investment of 8 billion KRW, operating funds of 10.1 billion KRW, and acquisition of other company's securities of 13.9 billion KRW, but the target for securities acquisition has not been determined, raising concerns about the specificity of fund use.
The counterparty is B.Grimm Power Korea, a subsidiary of Thai listed company B.GRIMM Power, which has high credibility. However, the conversion price can be adjusted downward to a minimum of 750 KRW, which could expand dilution effects if the stock price falls.
Combined with existing convertible bonds totaling 38.3 billion KRW, the potential diluted shares amount to 62,292,411 shares, or 24% of total outstanding shares, which may pressure long-term per-share value.
[AI Summary]UNISON's convertible bond issuance of 32 billion KRW results in a dilution rate of 11.5% and the purpose of funds particularly for securities acquisition lacks specificity. Given the potential downward adjustment of conversion price and existing dilution, the risk to existing shareholder value is significant.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)