1. What Happened? Decision to Issue 7 Billion KRW Convertible Bonds
Hanul Science announced that it will issue privately placed convertible bonds worth 7 billion KRW. Jeil E&S and Migeon Construction are participating as investors, with a conversion price of 2,344 KRW, a coupon rate of 1.0%, and a maturity rate of 2.0%. Payment is scheduled for August 19, 2025, and the bonds can be claimed from August 19, 2026, to July 19, 2028.
2. Why Issue Convertible Bonds? Securing New Growth Engines
Hanul Science plans to use the funds secured through this convertible bond issuance as investment resources for securing new growth engines such as the semiconductor materials business. This is interpreted as a strategic choice to overcome the sluggish performance of the existing optical communication business and secure future growth engines.
3. So, What’s the Impact? Coexistence of Opportunity and Risk
- Positive Aspects: Potential for long-term increase in corporate value through securing investment funds for new businesses, increased investment attractiveness due to the gap between conversion price and current price
- Negative Aspects: Possibility of deterioration in financial soundness due to increased financial burden, concerns about dilution of existing shareholders’ equity upon conversion of convertible bonds, possibility of worsening profitability due to increased interest expenses
Currently, Hanul Science is experiencing financial difficulties, such as continued operating losses and a high debt ratio. The success of the new business is a critical variable that will determine the future of the company.
4. What Should Investors Do? Careful Observation and Continuous Monitoring
Investors should make cautious investment decisions while closely monitoring the following:
- Progress and performance of the semiconductor materials business
- Whether the existing business improves profitability
- Changes in financial soundness indicators (debt ratio, interest expenses, cash flow)
- Trends in convertible bond conversions