Bitgwajeonja Co., Ltd. will issue KRW 16 billion worth of private convertible bonds (CB). The raised funds will be used for the company's operating capital and to repay existing convertible bonds.

Bitgwajeonja announced on the 22nd that it has decided to issue KRW 16 billion worth of its 18th unregistered, warrant-attached, unguaranteed private convertible bonds.

■ Issuance Terms and Use of Funds The payment date for these convertible bonds is August 4, with a maturity date of July 22, 2029. The interest rate has been set at a surface rate of 2.0% and a maturity rate of 6.5%. If held until maturity, the bonds will be repaid in a lump sum at 114.7743% of the principal.

The company plans to use KRW 8 billion of the raised funds as operating capital and allocate the remaining KRW 8 billion as debt repayment funds to acquire the existing 17th convertible bonds before maturity.

■ Conversion Price and Put/Call Option Terms The conversion price per share has been set at KRW 2,560. The conversion claim period runs from August 4, 2027, to July 4, 2029. Upon conversion, 6.25 million shares of common stock will be issued, representing 5.25% of the total currently issued shares. However, if the market price declines, the conversion price may be adjusted down to a minimum of KRW 1,792.

Bondholders will be granted early redemption rights (put options) on a monthly basis starting from August 4, 2027, which marks one year from the issuance date. Meanwhile, the company may exercise put rights (call options) for up to 50% of the issuance amount from August 5, 2027, to February 5, 2028.

■ Collateral, Underwriters, and Post-Issuance Shareholding Impact Collateral will also be provided for these convertible bonds. The company will establish collateral with a maximum claim amount of KRW 20.8 billion on land and buildings located in Munpyeong-dong, Daejeon, as well as on machinery, equipment, and insurance claim rights.

The underwriters are Baro Savings Bank and Mirae Asset Securities (as trustee of Baro Blind General Private Hybrid Asset Investment Trust No. 34), with each committing to underwrite KRW 8 billion.

Upon completion of this issuance, Bitgwajeonja's outstanding convertible bond balance will increase from the existing KRW 18.05 billion to KRW 34.05 billion. Additionally, the newly issued shares (6.25 million shares) will be combined with the existing outstanding convertible shares (11,876,038 shares), bringing the total number of convertible shares to 18,126,038. This represents approximately 16.08% of the current total issued shares (112,691,897 shares).