CHA AI Healthkare Completes KRW 25 Billion 35th Convertible Bond Issuance with Conversion Price 91% Premium Over Market Price, Limited Dilution of 1.1%
CHA AI Healthkare completed the issuance of the 35th unregistered unsecured private convertible bonds worth KRW 2,505,000,000 on June 19, 2026. This amount is reduced from the KRW 5 billion originally resolved by the board in March 2025, with a coupon rate of 0% and a yield to maturity of 1%.
The conversion price is set at KRW 12,463, representing a premium of approximately 91% over the current stock price of KRW 6,320. Conversion and face value division are restricted for one year from issuance, limiting immediate dilution risk. The new convertible shares amount to approximately 200,000 shares, only 1.1% of outstanding shares.
However, combined with the existing 36th convertible bond of KRW 40 billion, total potential convertible shares exceed 4.7 million, sustaining long-term overhang concerns. The stated purpose of the issuance is to raise investment funds, but specific use has not been disclosed.
[AI Summary]This convertible bond issuance is small in scale and priced at a premium, limiting short-term dilution. However, together with the large existing convertible bonds, it may exert long-term upward pressure on the stock price. The unclear use of funds suggests a focus on financial stability rather than growth, and the private placement to a related party like Cha Careus raises governance transparency concerns.
KOSPI Filing Information
Result of Issuance of Rights Offering or Equity-Related Bonds (Voluntary Disclosure)