HEM Pharma removes refixing clause, issues 15.9 billion won CB for facility and AI healthcare investment, dilution limited to 8.24%
HEM Pharma resolved on June 19, 2026 to remove the refixing clause from its existing convertible bonds and issued 15.9 billion won in unregistered unsecured private convertible bonds.
The conversion price is set at 26,789 won, lower than the current market price of 50,500 won, but the removal of refixing eliminates additional dilution risk; the number of new shares upon conversion is 593,527, representing 8.24% of total outstanding shares.
Proceeds will be used for Sejong factory expansion 8.55 billion won, operating expenses 4.85 billion won, and AI-based bio/healthcare technology development 2.5 billion won.
The CBs are private placements with a one-year lock on conversion and note split, and include a put option after 24 months and a 25% call option for the issuer.
[AI Summary]The removal of the refixing clause is positive for existing shareholders as it prevents downward adjustment of the conversion price, but the 8.24% dilution may weigh on short-term stock price. Funds are allocated to productive investments, but counterparties include newly formed funds, introducing governance risk.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)