CU Medical System Acquires 2 Billion Won Worth of Convertible Bonds Early to Minimize Shareholder Value Dilution

CU Medical System has decided to acquire and cancel convertible bonds (CB) worth 2 billion won before maturity to improve its financial structure and enhance shareholder value.

CU Medical System announced on the 6th that it has decided to acquire the 11th series of bearer, unsecured, privately placed convertible bonds worth 2 billion won before maturity.

These convertible bonds were issued through a private placement on March 18, and out of the total face value of 7 billion won, 2 billion won will be acquired early. The actual acquisition amount is approximately 2,071,090,000 won.

This acquisition of convertible bonds is due to the issuer's exercise of the early redemption option, and the company plans to cancel all acquired convertible bonds following a board resolution.

The current conversion price is 2,665 won per share. If the bonds are converted into shares, approximately 754,690 new shares could be issued, which would represent about 6.19% of the total number of shares outstanding.

The company expects that this cancellation will reduce potential dilution factors for share value and enable more stable financial management.

Following this early acquisition, CU Medical System also plans to negotiate with bondholders to acquire the remaining convertible bonds before maturity.

A company official stated, "To strengthen the soundness of our financial structure and eliminate potential dilution factors for shareholder value, we have decided to acquire the convertible bonds before maturity in accordance with agreements with bondholders and the terms of the convertible bond acquisition contract."

This early acquisition of convertible bonds is interpreted as a measure to reduce the potential burden of new share issuance while simultaneously pursuing financial stability and enhancing shareholder value.

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