Decision to Issue 20 Billion Won Private Placement Convertible Bonds, Conversion Price 10,352 Won (3.3% Discount to Market, Up to 17.3% Dilution)

Issuance of 20 billion won in convertible bonds (3rd series, unsecured private placement), conversion price 10,352 won (3.3% discount to current price of 10,710 won)
Maximum shares to be issued: 1,931,980 (17.30% dilution relative to outstanding shares)
Use of funds: Facility 10 billion won (mass production line for robot reducers), operating 6 billion won (R&D), acquisition of other securities 4 billion won (undecided)
Coupon rate 2%, yield to maturity 4%, maturity May 27, 2029
Put option exercisable from 1 year after issuance, every 3 months (yield 4% p.a.)
Conversion price adjustment: every 5 months, floor at 7,247 won (70% of initial conversion price)
Allottees: SangSangin Savings Bank (12 billion), SangSangin Plus Savings Bank (6 billion), SangSangin Securities (2 billion)
Collateral: 1st priority beneficiary rights on Incheon land and building (130%), joint guarantee from K-Humus (130%)

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