[Edaily Reporter Park Jung-Soo ] Hyulim ROBOT Co.,Ltd.(090710)has exercised its conversion rights for convertible bonds (CBs) issued by JK Synapse, increasing its stake to 31.71%.
Hyulim ROBOT Co.,Ltd. announced on the 25th that it exercised its conversion rights for 3 billion won worth of JK Synapse’s 25th Series CB, increasing its stake from 21.58% to 31.71%—a rise of 10.13 percentage points.
According to the report on large shareholdings disclosed on the 18th, Hyulim ROBOT Co.,Ltd. had previously participated in a 3 billion won third-party private placement, securing 3,099,173 common shares of JK Synapse and becoming the largest shareholder.
In addition, by converting 3 billion won worth of its 25th Series Convertible Bonds (CBs) into 3,099,173 common shares, its total shareholding increased to 6,198,346 shares. Consequently, its voting rights stake expanded from 21.58% to 31.71%. In its large-scale shareholding report, Hyulim ROBOT Co.,Ltd. specified the purpose of its holding as “influence over management control.”
The company also expects this convertible bond conversion to improve JK Synapse’s financial structure. This is because converting the convertible bonds held by the largest shareholder into common stock effectively converts 3 billion won in debt into equity.
Furthermore, Hyulim ROBOT Co.,Ltd. anticipates that, since the largest shareholder directly converted the CBs into common stock, the risk of these shares flooding the market in the short term will be reduced.
Following the 3 billion won rights offering completed last July, this convertible bond conversion marks another step in JK Synapse’s capital expansion. The company expects this to help alleviate concerns raised by some market observers regarding the maintenance of its listing due to a market capitalization below 20 billion won.
Hyulim ROBOT Co.,Ltd. stated, “Following the previous rights offering, this 3 billion won convertible bond conversion is a decision aimed at stabilizing JK Synapse’s corporate governance and enhancing corporate value through responsible management,” adding, “It has provided an opportunity to resolve financial uncertainties and concerns regarding the maintenance of its listing status.”