KNW Adjusts Conversion Price Down 26.6% Due to Market Decline, Convertible Shares Increase 36% Raising Dilution Concerns
The conversion price of the 3rd series convertible bonds has been adjusted downward by 26.6% from 9,035 KRW to 6,629 KRW. This is a periodic adjustment due to market price decline, increasing the number of convertible shares from 5,534,034 to 7,542,615, a rise of approximately 36%.
The adjusted shares represent about 12.5% of the total outstanding shares of 16,019,520, posing a potential dilution risk of up to 12.5% for existing shareholders upon conversion. The adjustment effective date is July 20, 2026, and no separate board resolution is required.
This adjustment reflects an upward limit revision following the completion of a capital reduction, and is purely a mechanical change to existing convertible bond terms without new capital raising.
[AI Summary]KNW's conversion price adjustment automatically modifies existing CB terms due to market conditions, increasing potential dilution by over 12% without fresh capital inflow, negatively impacting existing shareholder value. It may exert downward pressure on short-term stock price.