Exercise of 132,978 Shares from Series 11 BW, 3.72% Dilution and Remaining 90 Billion Won BW Balance Raises Further Dilution Concerns

HanWool & Jeju issued 132,978 new shares through the exercise of Series 11 stock purchase rights, resulting in a 3.72% dilution relative to total outstanding shares. The exercise price was adjusted to 7,520 won due to prior capital increases, raising 1 billion won in funds.
The remaining balance of unexercised stock purchase rights totals 9 billion won, corresponding to 1,196,941 potential shares, representing a potential dilution of over 52%. This poses a significant risk to existing shareholder value.
The company has been expanding capital through successive equity issuances and price adjustments, but the massive overhang of stock purchase rights is expected to pressure the stock price. Investors should closely monitor the possibility of additional dilution.
[AI Summary]This exercise results in a 5.82% effective dilution, and the unexercised balance of 9 billion won raises concerns of long-term downward pressure on the stock price. The unclear use of proceeds and repeated capital erosion undermine confidence in financial stability.