Exercise of Conversion Rights for 10th Series CB Causes 3.81% Dilution with Remaining 9 Billion Won CB Outstanding
Exercise of conversion rights resulted in issuance of 87,107 new shares, causing a 3.81% dilution relative to total outstanding shares.
The conversion price was adjusted from 18,540 won to 11,480 won due to a previous capital increase, representing a 38% discount to the current market price of 18,600 won.
Unconverted bond principal remains at 9,001,000,000 won, convertible into 784,059 shares, indicating potential for further dilution.
[AI Summary]This conversion causes moderate dilution of 3.81%, but the deep 38% discount and the remaining 9 billion won convertible bond balance pose significant future dilution risk. Protective measures such as conversion price adjustment or share buybacks may be needed to safeguard existing shareholder value.