1. What Happened? : Dongbang Agro Announces Convertible Bond Issuance

Dongbang Agro announced on August 11, 2025, the issuance of convertible bonds worth 6.9 billion KRW. The conversion price is set at 6,906 KRW, with both coupon and maturity rates at 0%. The conversion period is from September 19, 2025, to July 19, 2030.

2. Why? : Securing Funding for Growth

This bond issuance aims to secure funding for future growth and investments. The 0% interest rate minimizes financial burden, which is a positive factor. However, the potential conversion of these bonds into shares could lead to dilution for existing shareholders.

3. What’s Next? : Analyzing Potential Impacts on Stock Price

  • Positive Factors:
    • Potential for business expansion with secured funding
    • Reduced financial burden due to low interest rates
  • Negative Factors:
    • Potential stock dilution upon conversion
    • Upward pressure on stock price due to the conversion price being higher than the current market price

Given the current stock price being lower than the conversion price, the stock needs to surpass 6,906 KRW to incentivize bondholders to convert. Therefore, monitoring stock price movements is crucial.

4. Investor Action Plan: Key Checkpoints

  • Growth Strategy Execution: Monitor the effective utilization of funds and achievement of tangible results
  • Stock Price Movement: Continuously observe whether the stock price surpasses the conversion price (6,906 KRW)
  • Profitability Improvement: Examine efforts to manage costs and improve profitability
  • Information Transparency: Check for clear disclosure of information regarding the use of funds