Paratech Amends Convertible Bond Terms: Final Conversion Price Set at 937 KRW, Dilution Reduced to 16.96%
Paratech submitted an amendment on July 15, 2026, finalizing the conversion price of its 10 billion KRW 4th unsecured private convertible bond from 911 KRW to 937 KRW, as originally decided by the board on January 23, 2026.
With the higher conversion price, the number of shares issuable upon conversion decreases from 10,976,948 to 10,672,358 shares, lowering the dilution ratio relative to outstanding shares from 17.36% to 16.96%. The minimum adjusted price also increased from 638 KRW to 656 KRW.
This amendment is a procedural update following the determination of the conversion price; the total funding amount and bond terms remain unchanged. Of the 10 billion KRW raised, 7 billion will be used for acquiring securities of other entities and 3 billion for operating funds.
Bondholders can exercise a put option starting July 20, 2027, one year after issuance, with an annual yield of 3.0%. Conversion is allowed from July 20, 2027 to June 20, 2029.
The bond is issued to Enhance Investment Association, whose largest investor is Heyman with a 50% stake. Upon conversion, the largest shareholder may change.
[AI Summary]This amendment slightly reduces dilution risk by increasing the conversion price, but the potential dilution of 16.96% remains significant. The use of 70% of proceeds for unspecified securities acquisition and the presence of a put option introduce uncertainty. The near-term stock price impact is limited, warranting a neutral investment stance.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)