Issuance of 1.2 Billion Won 5th Series Convertible Bonds, Potential Dilution Up to 61.84%

Decision to issue 1.2 billion won of 5th series unsecured private convertible bonds, conversion price 10,095 won, new shares 118,870 (4.9% of outstanding shares).
Combined with existing 4th series (100 billion won, conversion price 19,677 won) and 5th series (15 billion won, conversion price 17,447 won) CBs, potential dilution reaches 61.84%.
All proceeds (1.2 billion won) will be used to acquire securities of Hwahyun Tourism Development, which recorded a net loss of 1.623 billion won in 2025.
Put option: bondholders can request early redemption every 3 months after 1 year, with redemption rates increasing from 104.083% to 111.917%.
Call option: issuer can buy back up to 50% of the CB within 1 year, with 2.0% premium on face value.
Conversion price can be adjusted downward to a minimum of 7,067 won (70% of initial price), with further adjustment to face value allowed up to 300 billion won for restructuring.

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