[Edaily Reporter Shin Ha-yeon ] KODI Co.,LTD.(080530), a company specializing in color cosmetics, has fully repaid 4.55 billion won worth of bonds with warrants (BW), thereby eliminating the burden of potential overhang (potential selling pressure).

KODI Co.,LTD. announced on the 11th that it had fully repaid the remaining balance of 4.55 billion won on its 17th Series BW, which was issued on August 9, 2023.

These BWs are non-separable, meaning the subscription rights expire simultaneously with the redemption of the bonds. Consequently, this redemption also eliminates the possibility of equity dilution resulting from future new share issuances. The company expects that removing this potential overhang factor will alleviate market concerns regarding shareholder value dilution and improve its capital structure.

Taking this BW repayment as an opportunity, KODI Co.,LTD. plans to enhance the stability of its financial structure while focusing on strengthening the competitiveness of its core business—the ODM (Original Design Manufacturing) of color cosmetics—and pursuing its mid- to long-term growth strategies.

A KODI Co.,LTD. official explained, “This redemption was carried out using the company’s own cash reserves without external financing, demonstrating the company’s cash mobilization capabilities and financial soundness to the market,” adding, “This is a strategic move to enhance shareholder value that goes beyond mere financial management.”

The spokesperson continued, “In the capital market, the early redemption of convertible bonds (CBs) and bond warrants (BWs) to eliminate overhang risk has recently become a major trend,” adding, “KODI Co.,LTD. plans to continue strengthening investor trust through its shareholder return policy while focusing on enhancing the competitiveness of its core color cosmetics ODM business and pursuing mid- to long-term growth strategies.”