Alpha AI issues 5 billion won convertible bonds for NGW acquisition, potential share dilution up to 72%
Alpha AI resolved on January 27, 2026 to issue 5 billion won in unsecured private convertible bonds Series 19, with the payment date corrected from June 30 to August 26, 2026.
The conversion price of 948 won was set at a premium to the last traded price before trading suspension, but it can be adjusted down to 664 won if the market price falls, raising severe dilution concerns.
All proceeds will be used to acquire 2.5 million shares of NGW, an unlisted hydrogen energy company that reported a net loss of 21.2 billion won and negative equity, indicating high investment risk.
Combining existing outstanding CBs with the new issuance, potential conversion shares total 14.44 million, representing 71.83% of current outstanding shares, severely diluting existing shareholders.
The bondholders are seven individuals with no disclosed relationship to the company, reflecting low governance transparency.
[AI Summary]Alpha AI's decision to issue 5 billion won CBs to acquire a financially troubled unlisted company raises questions about capital allocation. The wide conversion price adjustment range and total potential dilution of 72% pose extremely negative implications for shareholder value.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)