Mobile Appliance announced on the 27th that it has withdrawn its decision to carry out a 19 billion won third-party allocation paid-in capital increase and convertible bond issuance due to non-payment of contributions following the subscribers' breach of contract.

■ Withdrawal of 9 Billion Won Third-Party Allocation Paid-In Capital Increase

Mobile Appliance stated through a report on other major management matters that it will withdraw its decision on a roughly 9 billion won third-party allocation paid-in capital increase. The capital increase was approved at the initial board meeting on February 19.

The new shares originally scheduled for issuance amounted to 4,675,324 common shares, with an issue price of 1,925 won per share and a total issuance value of 8,999,998,700 won. The third-party allocation recipients were Hyosung Industrial Development Co., Ltd. and Ahn Soon-ok.

The company explained that although it repeatedly adjusted the capital increase schedule for the third-party allocation recipients, it had to withdraw the capital increase decision due to non-payment of contributions caused by breach of contract. Both the scheduled payment date and the withdrawal date are October 27.

■ Withdrawal of 10 Billion Won 7th Series Convertible Bond Issuance

Along with this, Mobile Appliance also withdrew its decision to issue 10 billion won worth of its 7th series convertible bonds. The bonds are unregistered, warrant-attached, unsecured privately placed convertible bonds approved at the initial board meeting on February 20. The total face value of the convertible bonds is 10 billion won, and the issuance recipient is Dramacart Co., Ltd. The scheduled payment date was set for October 27.

Mobile Appliance stated that although it repeatedly adjusted the bond payment schedule for the convertible bond recipient, it withdrew the issuance decision due to non-payment of contributions caused by breach of contract. The date of the decision to withdraw the convertible bond issuance is also October 27.