KRW 1.8B Convertible Bond Issuance for Debt Repayment, Conversion Price KRW 3,875, Potential Dilution 84.45% Including Existing CBs

Decision to issue KRW 1.8 billion of 31st unregistered, unsecured private convertible bonds, maturity 2029, coupon 6%, yield to maturity 8%
Purpose: repayment of existing debt of KRW 1.8 billion to Minimum Co.
Conversion price KRW 3,875 (approx. 24% discount to current market price of KRW 5,110), issuance of 464,517 shares (5.30% of outstanding)
Put option: starting 1.5 years after issuance, every 3 months, early redemption rates 103.154%~106.084%
Call option: issuer can force sale of 70% of the bond held by the underwriter at face value or face value + 3% per annum
Existing outstanding CBs (4 series 27-30) total KRW 29.1 billion, plus new issuance totals KRW 30.9 billion, potential conversion shares 7,405,318 representing 84.45% of current outstanding shares (8,770,137), indicating massive dilution risk
Conversion price adjustable downward, minimum adjusted price KRW 2,715 (70% of initial), can go to par value under certain conditions