D&D Pharmatech 1st Series CB Conversion Exercise of 29.9 Billion KRW Leads to 3.21% Dilution
On June 22, 2026, conversion rights were exercised on D&D Pharmatech's 1st series unregistered unsecured private perpetual convertible bonds for 29,923,284,000 KRW, resulting in 1,423,762 new shares.
The conversion price of 21,017 KRW is significantly below the current market price of 111,200 KRW, making conversion highly favorable, and causing a dilution of 3.21% relative to total outstanding shares.
Although the company previously acquired 4.4 billion KRW of its own convertible bonds before maturity to reduce potential dilution, this large-scale conversion offsets that effect, raising renewed concerns over shareholder value dilution.
The new shares are scheduled for listing on July 9, 2026, and future decisions on resale or cancellation will further impact the stock price.
[AI Summary]D&D Pharmatech reduced some dilution risk by acquiring 4.4 billion KRW of its 1st series CBs early, but the conversion of 29.9 billion KRW in the same series increased the overall dilution rate to 3.21%. As this is merely debt-to-equity conversion without new capital raising, the shareholder value protection effect is limited, and unless followed by cancellation or other capital policies, it may weigh on the stock price.