CSA Cosmic Corrects CB Issuance Postponing Payment Date and Adjusting Existing Conversion Prices Pushing Total Dilution to 40%
CSA Cosmic corrected its material disclosure on the issuance of the 5th convertible bond worth 5 billion won, extending the payment date from July 10, 2026 to September 30, 2026 and adjusting the maturity date, conversion period, and early redemption schedule accordingly.
As the payment date is delayed more than one month from the board resolution, the conversion price will be recalculated using the volume-weighted average price three trading days before the actual payment date per securities issuance regulations, which could lead to a lower conversion price and higher dilution risk if the stock price declines.
The correction reflects downward adjustments in conversion prices of existing 3rd and 4th CBs to 412 won and 320 won respectively, increasing total potential dilutive shares to 42.83 million or 40.16% of outstanding shares of 106.64 million.
All 5 billion won proceeds will be used for operational funding. The counterparty BTB Union has a weak financial profile with total equity of 3.06 billion won and a net loss of 441 million won, indicating low creditworthiness.
[AI Summary]CSA Cosmic's correction to its CB issuance disclosure reveals that the delayed payment may trigger a lower conversion price and the downward revision of existing CB conversion prices has pushed total potential dilution above 40%, severely burdening existing shareholder value. The use of funds is limited to operations rather than growth, and the counterparty's weak financial condition adds to the negative outlook for the stock.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)