What Happened?

Welcron announced on September 19, 2025, that it would issue KRW 2.3 billion in convertible bonds. The conversion price is KRW 2,331, with a 0% coupon and maturity rate, and it will be issued privately. The conversion start date is September 30, 2025, and the conversion end date is August 29, 2028.

Why Does It Matter?

This convertible bond issuance affects Welcron’s fundraising and financial structure. The raised funds can be used for investment activities, securing operating funds, or repaying existing debt. The 0% interest rate reduces the burden of interest expenses, but increased debt can impact financial soundness. The fact that the conversion price is higher than the current price (KRW 2,020) can raise expectations for future stock price increases.

So What’s Next?

  • Positive aspects: Business expansion, expectations of stock price increase
  • Negative/Neutral aspects: Possibility of increased debt, gap between current price and conversion price, uncertainty regarding the use of funds

Currently, Welcron is facing the challenges of declining sales and a high debt ratio. The key is how Welcron will utilize the funds raised through the convertible bond issuance to improve its fundamentals and secure growth engines. External factors such as exchange rates, interest rates, and oil prices can also affect Welcron’s business.

What Should Investors Do?

The current investment recommendation is to wait and see. Short-term stock price volatility is expected, so a cautious approach is necessary. In the mid- to long-term, investors should closely monitor the performance of new renewable energy and secondary battery material businesses, improvement in profitability of the construction/plant sector, and management of the debt ratio.