Issuance of KRW 100B Convertible Bonds at Premium Conversion Price of KRW 7,802 – for Working Capital and Debt Repayment | Aroot(096690)

Decision to issue KRW 10 billion worth of 18th series unsecured private convertible bonds (coupon 3%, yield to maturity 4%, maturity June 18, 2029).
Conversion price of KRW 7,802, representing a ~583% premium over current price of KRW 1,337; initial dilution limited (24.16% increase based on filing's share count, or ~5.3% based on current outstanding shares).
Of the KRW 10 billion raised, KRW 7 billion will be used to repay existing borrowings (KRW 1.99 billion from Woongchang Savings Bank and KRW 5.13 billion from Joeun Savings Bank, both at 7.5% interest), and KRW 3 billion for working capital.
Conversion period: June 18, 2027 to May 17, 2029; conversion price subject to adjustment every 5 months based on market price decline (floor of KRW 5,462, 70% of initial conversion price).
Put option: Bondholders may request early redemption starting June 18, 2027, and every 3 months thereafter, at redemption rates ranging from 101.0151% to 102.8917%.
Call option: Issuer may call the bonds from July 18, 2026 to July 18, 2027, within agreed ratios per underwriter.
Collateral: Real estate in Uiwang-si, Gyeonggi-do owned by subsidiary Origin Industrial Development Co., Ltd., with maximum claim amount set at 120% of bond face value.
Underwriters: Cryptogrow No.1 (KRW 7 billion, up to 50%), Christianpic Co., Ltd. (KRW 1 billion, up to 50%), Curious Holdings Co., Ltd. (KRW 2 billion, within major shareholder stake).

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