HEM Pharma will issue 54 billion won worth of private convertible bonds (CB) to secure funds for facility investment and operations.

The company announced on the 6th that it held a board meeting and decided to issue 54 billion won worth of its second unregistered, rights-attached, unguaranteed private convertible bonds.

■ Use of Funds... 34.5 Billion for Facilities, 15.5 Billion for Operations, 4 Billion for Other Purposes

The raised funds will be used as follows: 34.5 billion won for facility funding, 15.5 billion won for operational funding, and 4 billion won for other funding. The payment date is August 14, 2026, and the maturity date is August 14, 2031.

This CB has a coupon rate of 0% and a yield to maturity of 1.5%. If held to maturity, the principal will be repaid in a lump sum at 107.7732%. The issuance method is a private placement.

■ Conversion Price of 43,912 Won... 14.55% of Total Issued Shares

The conversion price has been set at 43,912 won. The number of common shares issuable upon conversion is 1,229,732 shares, which corresponds to 14.55% of the total issued shares.

Conversion requests can be made from August 14, 2027, to July 14, 2031.

■ Put Option and Call Option Conditions

Bondholders may exercise their early redemption request right (Put Option) every six months starting from August 14, 2028, which marks 24 months from the issuance date.

The issuing company or a designated third party may exercise its sell-back request right (Call Option) every three months from August 14, 2027, marking 12 months from the issuance date, through August 14, 2028, within a range of up to 35% (18.9 billion won) of the total issuance amount. The company stated that if the call option is exercised in full, it can acquire up to 430,406 shares (a 5.09% stake) based on the initial conversion price.

This CB will be privately placed targeting securities company trust accounts and investment partnerships. The company explained that it selected investors considering factors such as achieving management objectives and swift fundraising.