Pulmuone plans to raise funds through a third-party allotment capital increase of approximately 40 billion won to early-repay its existing convertible bonds (CB).

In a regulatory filing on the 29th, Pulmuone announced that its board has decided to issue 3,375,812 shares of redeemable convertible preferred stock (RCPS) with voting rights via a third-party allotment. All funds raised through this capital increase will be used for debt repayment.

• *[Details of the Issuance]**
• Issue Size: 11,849 won per share, totaling 39,999,996,388 won (approximately 40 billion won).
• Conversion Terms: The conversion ratio is 100%, with an initial conversion price of 11,849 won. Upon conversion, 3,375,812 new common shares will be issued, representing 8.14% of the total shares outstanding post-conversion.
• Conversion/Redemption Period: The conversion request period runs from August 13, 2027, to July 13, 2036. The company's optional redemption period runs from August 12, 2029, to August 13, 2036. Shareholders will not be granted a separate put option (redemption request right).
• Dividend Terms: The preferred dividend rate is 2.0% per annum, with cumulative and participating preferred stock conditions.

The third-party allottee is 'NV Mezzanine Growth Equity Private Investment Partnership.' Pulmuone explained that it selected the investor after comprehensively considering the investor's investment intent, funding capacity, and investment terms to improve its financial structure and ensure stable financing. The allotted shares will be placed under lock-up for one year.

[Use of Proceeds and Pricing Background] The raised funds will be used to repay the 71st convertible bonds (CB) issued in 2023. The borrowing amount for these bonds is 60 billion won. While the nominal maturity date based on the filing is September 5, 2053, the company plans to repay them early around September 2026.

Additionally, Pulmuone stated that the issue price of the preferred shares was set at 11,849 won by applying a 35% premium to the base share price of 8,777 won, which was calculated in accordance with the 'Regulations on the Issuance and Disclosure of Securities.'