[Public Notice+] FineTech Acquires and Cancels BW Worth 2.4 Billion KRW Before Maturity

[Asia Economy Reporter Eunmo Koo] FineTec, a specialized company in OLED display equipment, is accelerating efforts to enhance shareholder value by acquiring and retiring warrants.

On the 18th, FineTec announced through a disclosure that it will purchase and retire warrants attached to convertible bonds (BW) worth 2.35 billion KRW before maturity.

A company representative stated, “The retirement through acquiring subscription warrants is a decision to resolve potential issuance volume and minimize stock price volatility risks amid difficult market conditions. We plan to continue shareholder-friendly policies and responsible management this year as well, including reducing concerns about shareholder value dilution. After retirement, we also intend to additionally purchase remaining warrants on the market to minimize overhang issues.”

The purchased amount consists of 1 million subscription warrants held in trust by the company from the bearer detachable convertible bonds issued in 2018, corresponding to 1.79 million potential convertible shares. Based on the previous day's closing price of 1,315 KRW, the retirement decision worth approximately 2.35 billion KRW will prevent an additional 4.17% of the current floating shares from being issued.

Previously, in May last year, FineTec also acquired and fully retired warrants and bonds worth 21.4 billion KRW before maturity.

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