APTN decided to issue 15 billion KRW in 11th series unsecured private convertible bonds to finance operating funds.
The conversion price is set at 1,000 KRW, a 31.6% premium to the current market price of 760 KRW, but it can be adjusted down to a minimum of 700 KRW after five months, raising significant dilution concerns.
Upon conversion, 15 million new shares would be issued, representing a 76.3% increase over the current 19,658,914 outstanding shares.
Including existing convertible bonds, total potential conversion shares amount to 37,315,149, or 189.81% of current shares.
The buyer is Pina Technology Investment Association, a small partnership with total assets of 21 million KRW, indicating weak counterparty credibility.
[AI Summary]This CB issuance aims to secure short-term operating funds but poses serious risks to existing shareholders due to potential downward price adjustments and massive dilution. The private placement to a small investment vehicle adds governance concerns.
KOSDAQ Filing Information
Report On Major Events (Decision On Issuance Of Convertible Bonds)