[Edaily Reporter Kwon Oh Seok ] Fantagio Corp.(032800)’s stock price is surging during trading hours. Buying interest is surging following the company’s announcement that it will cancel all of its 13 billion won in convertible bonds (CBs) to enhance shareholder value.

According to MP Doctor on the 28th, Fantagio Corp.’s stock is trading at 1,678 won as of 10:56 a.m., up 14.77% from the previous trading day.
Fantagio Corp. announced today that it held a board meeting the previous day 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, the company amended its disclosure regarding the “repurchase of convertible bonds prior to maturity after issuance,” changing the future handling method from the previous “to be decided at a later board meeting” to “full cancellation.”
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. A company official 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.”