1. What’s Happening with JSLink’s Convertible Bond Issuance?

JSLink has decided to issue ₩8 billion worth of convertible bonds through a private placement. The conversion price is set at ₩15,346, higher than the current market price. The payment date is September 3, 2025, and the conversion period is from September 3, 2026, to August 3, 2028.

2. Why is JSLink Issuing Convertible Bonds?

This bond issuance aims to secure funds for new business investments and operating expenses. JSLink has been actively pursuing new business expansions, necessitating additional capital.

3. How Will This Impact the Stock Price?

  • Positive Aspects: The influx of funds can accelerate investments in new businesses and strengthen growth momentum. The conversion price being higher than the current market price also mitigates immediate concerns about stock dilution.
  • Negative Aspects: Increased debt burden, potential deterioration of financial health due to higher interest expenses, and the possibility of future stock dilution if the share price rises are key concerns. The information asymmetry inherent in private placements should also be considered.

4. What Should Investors Do?

  • Short-term Investment Strategy: While securing funds is positive, the increased financial burden poses a counterbalancing risk. The market is expected to closely monitor JSLink’s financial improvements and business performance.
  • Long-term Investment Strategy: The success of new ventures and the turnaround of its healthcare business are crucial factors. Continuous tracking of fundamental changes is essential.
  • Key Considerations: Investors should carefully monitor the possibility of conversion and subsequent stock dilution, the financial burden from the high debt ratio and accumulated deficit, and the performance of new business initiatives.