[Public Notice+] BusinessOn Exercises 20 Billion KRW CB·BW... Dispelling 'Overhang' Controversy

"No Plans to Sell Acquired Shares... Maintaining Non-Debt Management Policy"

[Asia Economy Reporter Minwoo Lee] BusinessOn Communication announced on the 19th that it had exercised convertible bonds and warrants totaling 1,831,500 shares on the 16th. The conversion amount is approximately 20 billion KRW and is scheduled to be listed on the stock market on the 2nd of next month.

A BusinessOn official stated, "The shares acquired through this exercise are intended to strengthen management control, so there are no plans to sell them, and it will enable us to maintain a debt-free management stance. With the uncertainty regarding the large volume of pending shares (overhang) in the market removed, we plan to accelerate company growth and enhance corporate value."

Accordingly, as the company's debt is largely converted into equity, it is expected that financial structure improvement will expand funding capacity. The derivative valuation losses incurred so far are expected to decrease, significantly improving net profit for the current period.

Currently, BusinessOn is the number one company in the B2B electronic tax invoice sector, securing 4 million business users. It provides services including SmartBillSign, a non-face-to-face electronic contract service, SmartRPA for workflow automation, big data services including risk management called 'SmartMI,' and online advertising optimized for B2B marketing.

In September of last year, Praxis Capital Partners acquired the company. At that time, Praxis Capital Partners obtained management rights by purchasing convertible bonds (CB) and bonds with warrants (BW), including stock acquisition. In July of this year, BusinessOn also acquired GloHands.

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