1. The Treasury Stock Disposal: What Happened?

On September 10, 2025, GNC Energy decided to dispose of 426,004 treasury shares, equivalent to ₩14.7 billion. This decision aims to raise capital for the issuance of convertible bonds.

2. Why Dispose of Treasury Stock? – A Strategy for Growth

GNC Energy is actively pursuing business diversification and overseas expansion, including investments in a power plant in Papua New Guinea and the acquisition of a stake in Kwani Energy. The company is also accelerating investments in new businesses such as fuel cell power generation and edge data center construction. This treasury stock disposal is primarily intended to secure the necessary funding for these growth strategies.

3. Impact on Corporate Value

  • Positive Effects:
    • Securing funds for new business investments and strengthening growth momentum
    • Potential for improving financial structure through convertible bond issuance (depending on issuance conditions)
    • Minimizing dilution of shareholder value compared to rights offerings
  • Potential Risks:
    • Possible increase in financial burden depending on the terms of convertible bond issuance
    • Short-term stock price volatility

4. Key Investment Takeaways

Investors should closely monitor the specific terms of the forthcoming convertible bonds (conversion price, maturity, interest rate, etc.), the company’s plans for utilizing the raised capital, and the actual business performance. While the company’s long-term growth potential is positive, investment decisions should be made prudently.