HanWool & Jeju Amends CB Issuance Disclosure, Conversion Price Raised from 8,680 to 17,860 KRW Reducing Dilution
This amendment finalizes the conversion price of the 14th unregistered private convertible bond at 17,860 KRW, up from the previously stated 8,680 KRW, reducing the potential new shares from 1,152,073 to 559,910 shares.
The new conversion price represents a 51.4% reduction in potential dilution from this bond alone, lowering its share count ratio from 33.52% to 12.71% of total outstanding shares.
However, existing convertible bonds saw their conversion prices lowered: the 10th and 11th series dropped from 11,480 to 7,520 KRW, increasing their conversion shares. Total potential dilution from all outstanding convertibles stands at 90.60% of current shares.
Proceeds of 10 billion KRW are allocated entirely for general operating expenses with no specific investment plans disclosed.
The counterparty JK New Technology Investment Association No.19 is a newly formed special purpose vehicle with undisclosed financials and limited transparency; its managing partner is JK Ventures Co., Ltd.
[AI Summary]While the upward revision of the conversion price mitigates dilution from this specific bond, the downward adjustment of existing convertible prices and the high volume of outstanding convertibles keep total potential dilution above 90%, posing a persistent risk to shareholder value. The lack of a concrete growth strategy for the funds and opacity of the counterparty result in a below-neutral investment profile.
KOSDAQ Filing Information
[Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)