[Public Notice+] Kumho Electric "Raised 20.4 Billion KRW... Preparing New Business as Planned"

[Asia Economy Reporter Yoo Hyun-seok] Kumho Electric, a display and general lighting manufacturer, announced on the 4th that the payment for the second tranche of convertible bonds (CB) worth 10.3 billion KRW, issued on the 29th of last month, has been completed. As a result, Kumho Electric successfully raised a total of 20.4 billion KRW, including the first tranche CB worth 10.1 billion KRW issued in March.

The purpose of this fundraising is to secure financial soundness and to promote new business ventures. Kumho Electric underwent a change in major shareholders and management rights through an extraordinary general meeting of shareholders in January, and was approaching early redemption of the first tranche public offering bonds with warrants issued by the previous management.

A company official stated, "It is true that the series of planned fundraising processes were difficult due to the severely tightened capital market caused by the recent COVID-19 situation, but we were able to attract investment by having investors recognize the company’s long-established history, brand value, and future growth potential. We have also fully repaid the previously claimed 19 billion KRW worth of bonds with warrants (BW), securing financial stability." He added, "With the completion of restructuring and organizational reorganization, we plan to actively proceed with new business through amendments to the articles of incorporation and addition of business objectives at the extraordinary general meeting of shareholders scheduled for the 29th, aiming for a turnaround of existing businesses."

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