iA Decides to Issue 5 Billion Won Convertible Bonds... Up to 20.6% Dilution Risk

iA has decided to issue 5 billion won in unregistered private convertible bonds to secure operating funds.
The conversion price is 2,573 won, slightly below the current stock price of 2,640 won, and conversion would result in 1,943,256 new shares, representing 20.55% of outstanding shares.
Including the potential dilution from the existing 8th CB of 15.5 billion won, the total dilution rate reaches 47.46% of total outstanding shares, posing a significant threat to existing shareholder value.
The conversion price can be adjusted downward to as low as 1,802 won in case of market decline, and a put option is granted after 3 years. The counterparty is Cactus Oasis No.3 Investment Association, not a related party.
[AI Summary]This convertible bond decision, despite being for short-term working capital, carries an extremely negative impact on shareholder value due to over 20% new dilution and a cumulative 47.5% dilution from existing bonds. Downward adjustment risk and private placement nature warrant investor caution.