KOAS Issues KRW 2.51 Billion 8th CB at Conversion Price KRW 2,050, Dilution Risk of 9.83%
KOAS has decided to issue KRW 2.51 billion in 8th series unregistered unsecured private convertible bonds to Korea Livestock Data Co., Ltd.
The proceeds will be used entirely for acquiring securities of another company, but the specific target has not yet been determined.
The conversion price of KRW 2,050 is below the current stock price of KRW 2,185, potentially issuing 1,224,390 new shares and diluting existing shareholders by 9.83%.
Korea Livestock Data, the bondholder, had negative equity of KRW -4.83 billion and a net loss of KRW 8.15 billion in 2024, indicating severe financial weakness.
The bonds include a call option allowing the issuer to repurchase up to 30% at a 1% premium, and conversion is restricted for one year.
This filing has been amended more than 8 times since the initial decision in December 2025, reflecting repeated delays and condition changes.
[AI Summary]KOAS's 8th CB issuance has a moderate dilution of 9.83%, but the opaque use of funds and the counterparty's poor financial health pose significant risks to shareholder value. The conversion price below the market creates strong early conversion incentives, and frequent amendments raise governance concerns.
KOSPI Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)