SAMIL PHARMACEUTICAL Decides to Issue 10 Billion Won Convertible Bonds - Funding for Vietnam CMO Factory, Expected 6.07% Share Dilution

SAMIL PHARMACEUTICAL has decided to issue 10 billion won in unsecured private convertible bonds, the 24th series.
The proceeds will be used for operating funds of its Vietnam eye CMO factory and to cover potential repayment of existing exchangeable bonds upon put option exercise.
The conversion price is 7,245 won per share, a 3.4% premium over the current price of 7,010 won. The issuance could result in up to 1,380,262 new shares, representing a 6.07% dilution of existing shares, and combined with prior bonds, total potential dilution reaches 7.84%.
Bondholders have a put option after two years, while the issuer holds a call option to purchase up to 35% of the bonds at a slight premium, providing some early redemption flexibility.
The counterparties include major domestic securities firms such as Samsung Securities, NH Investment & Securities, Mirae Asset Securities, and Korea Investment & Securities, as well as specialized investment funds, indicating high credibility.
[AI Summary]SAMIL PHARMACEUTICAL's convertible bond issuance funds Vietnam factory expansion, supporting long-term growth, but the up to 7.84% potential share dilution weighs on existing shareholders. Short-term stock price may face pressure, but the strategic investment should be considered for mid-to-long term value.