HLB Life Step will early-acquire KRW 9.75 billion worth of its 4th series convertible bonds (CB) before maturity. The total acquisition amount, combining principal and interest, is KRW 10,039,043,000.

The company finalized the decision through a board resolution on the 14th, and the funds will be raised from its own resources. The acquisition method is an over-the-counter purchase, and the target is the 4th series unregistered unguaranteed private convertible bonds issued on February 20, 2025 (face value of KRW 9.75 billion).

■ Payment in Two Installments... Total Interest KRW 289.04 Million

The acquisition payment will be made in two installments.

• 1st installment (July 14): Principal KRW 2 billion + Interest KRW 56,632,000 = KRW 2,056,632,000 • 2nd installment (August 13): Principal KRW 7.75 billion + Interest KRW 232,411,000 = KRW 7,982,411,000

Regarding the reason for the acquisition, the company stated that it is an "early bond acquisition before maturity through consultation with bondholders." The future treatment of the acquired CBs (including whether they will be canceled) will be decided at a subsequent board meeting.

■ 1.22 Million Shares Issuable Upon Conversion... 6.54% of Total Issued Shares

Assuming all of the CBs being acquired are converted into shares, the base conversion price is KRW 7,990 per share, and up to 1,220,275 common shares could be newly issued. This represents 6.54% of the current total issued shares.

However, since the final treatment method has not yet been determined, whether the potential share dilution will actually decrease depends on future board decisions.

■ Sellers Include HLB L&S... Related Party Sells KRW 2 Billion

Institutional and individual investors, including HLB Life Science, participated in this sale. Notably, HLB Life Science, a related party of the largest shareholder, is selling KRW 2 billion in face value.

Meanwhile, as of the time of writing, some figures related to the calculation of the convertible bond balance need to be verified based solely on the publicly disclosed information. Any subsequent corrective disclosures or additional explanations will be reflected accordingly.