[Edaily Reporter Kwon Oh Seok ] Comprehensive entertainment company Fantagio Corp.(032800)announced on the 28th that it held a board meeting on the 27th and decided to cancel all of its 7th Series Convertible Bonds (CBs). The total face value of the 7th Series Convertible Bonds to be canceled is 13 billion won.

Fantagio Corp. had previously repurchased the entire amount of these convertible bonds prior to maturity in May. Through this board resolution, the company finalized its policy to cancel all of them rather than resell them. Accordingly, on the same day, it amended its disclosure regarding the “repurchase of convertible bonds prior to maturity following issuance,” changing the future handling method from the previous “to be decided at a later board meeting” to “cancellation in full.”
Once the cancellation procedure is complete, the 7th Series Convertible Bonds and the corresponding conversion rights will be extinguished. This will prevent the bonds from re-entering the market and is expected to alleviate concerns regarding potential dilution of equity that could have resulted from the exercise of conversion rights.
Fantagio Corp. explained that this decision is part of its capital policy, which takes into account both the rights and interests of existing shareholders and the company’s long-term value. Namgung Gyeon, Chairman of Fantagio Corp., stated, “We will continue to pursue responsible capital policies that enhance corporate value and shareholder value by comprehensively considering the business environment and market conditions.”
Meanwhile, Fantagio Corp. is proceeding with a public offering to proactively respond to changes in KOSDAQ market regulations and stricter listing maintenance criteria related to market capitalization, as well as to secure stable business operations and a solid financial foundation. Through this capital raising, the company plans to strengthen its business competitiveness and financial stability while, by canceling all existing convertible bonds, striving to achieve a balanced approach to expanding its growth foundation and protecting shareholder interests.