K-Auction Receives Notice of Non-Exercise of Redemption Rights on Entire 29.5 Billion Won CB

K-Auction has received notice that investors will not exercise the put option on the entire 29.5 billion won worth of convertible bonds (CB) issued in 2022.

On July 13, K-Auction stated, "We have received a notice from LB Investment (LB Next Unicorn Fund), the main investor in the CB, that they will not exercise redemption rights on the entire 29.5 billion won worth of CB until September 2027." The company added, "By alleviating short-term repayment pressure and securing financial stability, we will respond with enhanced corporate value."

K-Auction has obtained a deferment of all CB redemption rights issued in September 2022 until next year. The CB’s interest rate will remain at 2.8% per annum until September this year, and will be adjusted to 3.8% per annum from September 25 this year to September 25 next year.

The decision not to exercise the CB put option is seen as a strong endorsement by the investors of K-Auction’s recent shareholder return policies, including share buybacks and the largest shareholder’s free share grant, as well as the turnaround in its core business and growth in art fractional investment, which are expanding the base of the art investment market.

A company representative said, "We are grateful to the investors for their confidence in our long-term growth potential. This agreement allows us to continuously operate our funds without short-term repayment pressure and provides the foundation to focus on our mid- to long-term growth strategy."

This content was produced with the assistance of AI translation services.