HLB Therapeutics announced on the 6th through a regulatory filing that it will carry out a debt-to-equity swap of approximately KRW 11.181 billion with its largest shareholder, HLB. This measure involves acquiring convertible bonds (CBs) held by HLB before maturity, with the aim of reducing debt and improving the financial structure.

■ Third-Party Allotment Capital Increase via Offset, Not Cash Inflow The company will conduct a third-party allotment capital increase targeting HLB. A total of 6,103,185 new common shares will be issued at KRW 1,832 per share, raising a total of KRW 11,181,034,920. However, this transaction is not a typical capital increase involving cash inflow. It will be executed as a debt-to-equity swap in which the CB bonds held by HLB are offset against the new share subscription price. The company explained that the new shares were allotted in accordance with the articles of incorporation provision on 'achieving managerial objectives, including improvement of financial structure.'

■ Early Repayment of 17th and 18th CBs... Total KRW 11.1 Billion Debt Repayment HLB exercised its early repayment put option on the 17th and 18th unsecured private placement bearer CBs it holds. Accordingly, HLB Therapeutics will repay a total of KRW 11,181,035,000 in debt, comprising KRW 6,106,299,000 (including principal and interest) for the 17th CB and KRW 5,074,736,000 (including principal and interest) for the 18th CB. In particular, the entire face value of KRW 5 billion for the 18th CB will be acquired through over-the-counter purchase before maturity. The acquisition amount, including principal and interest, is KRW 5,074,736,000, with a scheduled payment date of August 20, 2026. The company plans to cancel the relevant CB from the Korea Securities Depository's registered bond system after the acquisition.

■ New Share Payment and Listing Schedule and Conversion Price Information The new share payment date is August 20, 2026, and the scheduled listing date is September 8, 2026. The new shares will be deposited with the Korea Securities Depository and subject to a one-year lock-up period from the listing date. Meanwhile, the conversion price of the 18th CB as of the reporting date is KRW 6,782 per share. Had the CB been fully converted into shares, 737,245 common shares (0.83% of total issued shares) could have been issued; however, the conversion will not take place as the company decided to acquire and cancel the CB before maturity. The issue price of KRW 1,832 was determined by rounding up the base share price of KRW 1,831.26, calculated based on the weighted average stock prices over the recent one-month, one-week, and most recent trading day, in accordance with the 'Regulations on the Issuance and Disclosure of Securities.'