Sungho Electronics has decided to acquire the entire amount of its 17th private placement convertible bonds (CB) worth 5 billion won before maturity. According to a regulatory filing by the company on the 9th, the acquisition will take place through an over-the-counter purchase method using the company's own funds, following the exercise of a call option held by existing bondholders.

The face value of the target bonds to be acquired is 5 billion won, and the acquisition decision date is June 9, 2026. Applying the yield of 104.5765% stipulated in the call option contract, the actual acquisition amount is calculated to be a total of 5,228,825,000 won, including both principal and interest. The scheduled payment date for this amount is August 1, 2026. Following the acquisition of the convertible bonds, the company plans to finalize whether to cancel or resell them through a board resolution. Upon the completion of this transaction, the outstanding balance of these convertible bonds will be zero.

The 17th series of convertible bonds was issued on August 1, 2025, with an original maturity date of August 1, 2028. As of the reporting date, the conversion price per share is 1,150 won, and the conversion claim period runs from August 1, 2026, to July 1, 2028. If all the acquired convertible bonds are converted into shares, 4,347,826 new common shares will be issued, representing 6.13% of the current total number of issued shares.

The sellers in this transaction consist of the following existing bondholders:

• Prime Asset Management: 500 million won • Artman Asset Management: 1 billion won • LX Asset Management: 1 billion won • Aitrust Asset Management: 1 billion won • Susung Asset Management: 1.5 billion won.