Unichem Adjusts 41st BW Exercise Price Due to Stock Merger, Mechanical Change
Unichem has increased the exercise price of its 41st unregistered interest-bearing unsecured bonds with warrants BW from 914 KRW to 9,140 KRW, a tenfold adjustment. This mechanical change follows a stock merger that consolidates the par value from 500 KRW to 5,000 KRW per share, as stipulated in the contract.
As a result, the number of shares issuable upon exercise decreases from 31,825,729 to 3,182,572 shares, a one-tenth reduction. The total outstanding principal of the BW is approximately 29.1 billion KRW, net of an early redemption claim of 0.9 billion KRW.
This adjustment is a simple arithmetic revision without any new capital raising, thus no direct impact on existing shareholder value. However, the potential dilution from the BW remains substantial at about 76% of market cap, which may pressure the stock price in the long term.
[AI Summary]The BW exercise price adjustment by Unichem is a contractual obligation following the stock merger with no economic substance change. Nonetheless, if the outstanding 29.1 billion KRW BW is fully exercised, it would dilute existing shareholders by approximately 35% of total shares outstanding, preserving a significant dilution risk.
KOSPI Filing Information
Adjustment of Conversion Price, Exercise Price of Stock Subscription Rights, and Exchange Price (Notice of Disclosure)