Pharos iBio Adjusts Conversion Price to 8,000 KRW for 1st Series CB Due to Market Decline; Potential Dilution Rises
Pharos iBio disclosed an adjustment of the conversion price for its 1st series convertible bond from 8,935 KRW to 8,000 KRW.
This automatic adjustment due to market price decline increases the number of convertible shares from 2,126,468 to 2,375,000, a rise of approximately 1.9%.
The adjusted price of 8,000 KRW is the minimum allowed, equivalent to 89.53% of the original issue price.
Despite the lower conversion price, the current stock price of 5,070 KRW remains well below, limiting immediate conversion incentive; however, if the stock recovers, dilution risk increases.
The adjustment was made automatically per the bond terms without a board resolution.
[AI Summary]This conversion price reduction is a routine contractual step reflecting the stock decline, moderately increasing potential dilution. Immediate conversion is unlikely due to the stock price gap, but existing shareholders face higher dilution risk if the stock appreciates.