Finger Story Adjusts Conversion Price, Raising Dilution Concerns for Existing Shareholders
Finger Story lowered the conversion price of its 4th series convertible bonds from 9,975 KRW to 6,985 KRW, a 30% reduction due to declining market price. This adjustment follows a prior conversion price reset to 9,975 KRW after a stock split.
As a result, the number of convertible shares for the outstanding 8.5 billion KRW in bonds increased from 852,130 to 1,216,893 shares, an addition of 364,763 shares. This represents approximately 10.4% of total outstanding shares of 3,509,724, creating significant potential dilution.
The downward adjustment is a contractual measure to reflect market conditions and does not involve new capital raising or operational funding. Existing shareholders face potential per-share value erosion upon conversion, which could negatively impact the stock price.
[AI Summary]Finger Story's conversion price reduction for its 4th series CB creates potential dilution exceeding 10% of outstanding shares, weakening existing shareholder value. Without new capital inflow, the increase in convertible shares may reduce per-share net asset value and earnings metrics, warranting investor caution.