Nexteel announced on the 22nd that it will issue KRW 50 billion in private convertible bonds (CB) to secure funds for facility investment and new business expansion.

The convertible bonds to be issued are unregistered, unsecured private convertible bonds with detachable warrants, with a total face value of KRW 50 billion. Both the nominal interest rate and the maturity interest rate are 0%, and the maturity date is June 30, 2031.

The specific uses of the funds raised are as follows: • KRW 40 billion: Expansion of roll bending equipment and investment in related auxiliary facilities at the Pohang No. 3 plant • KRW 100 billion: Funds for reviewing business expansion and new investment opportunities

The conversion price of the convertible bonds has been set at KRW 16,134 per share. The number of common shares issuable upon conversion is 3,099,045 shares, which is equivalent to 11.92% of the current total number of issued shares (26,002,000). The conversion request period runs from June 30, 2027 to May 30, 2031.

These convertible bonds will be issued to "TNH TV Optimus New Technology Fund No. 1." The company explained that the issuance target was selected after comprehensively considering the purpose of the fundraising, the investor's ability to make payments, investment conditions, and the timing of the investment.

The investment terms also include option exercise rights. Bondholders may exercise a put option starting from the second anniversary of the issuance, while the company holds a call option within a certain range between the first and second anniversary of the issuance.