What Happened?
Seegene AI announced on September 19, 2025, the issuance of $5 billion in private convertible bonds (CBs). This represents 9.61% of the company’s market capitalization, with a payment date of September 29th. The coupon rate is 0%, with a maturity rate of 5%, and the conversion price is set at ₩3,629, close to the current market price.
Why Issue Convertible Bonds?
Seegene AI is facing challenges due to a sharp decline in sales and continued operating losses. This CB issuance is likely intended to secure operating funds and invest in its future growth engine, the medical AI business.
What Impact Will the CB Issuance Have?
Positive Aspects:
- Secures operating and R&D funds
- Strengthens investment in new business (Medical AI)
Negative Aspects:
- Potential dilution of existing shareholder value upon conversion
- 5% interest payment burden at maturity
- Continued concerns about financial health
- Increased stock price volatility
What Should Investors Do?
Key Investment Points:
- Maintain a conservative perspective: Verify sales recovery and profitability improvement.
- Monitor the transparency and efficiency of fund utilization.
- Consider the long-term growth potential (Medical AI).
- Monitor CB conversion conditions and timing.
This report is for investment reference only, and the responsibility for investment decisions rests with the individual investor.