[After CB Issuance] BeomLG's Koo Bon-ho Expects 10% Profit from Lemon CB

[Asia Economy Reporter Hyunseok Yoo] Pantos Holdings, owned by Koo Bon-ho of the 범LG family, is expected to convert convertible bonds (CB) invested in the KOSDAQ-listed company Lemon into stocks, recording a yield in the range of about 10%. Although a yield of up to 200% was initially possible, the stock conversion was delayed due to a lock-up period caused by the pre-listing CB investment.

According to the Financial Supervisory Service's electronic disclosure system (DART) on the 16th, Lemon announced on the 5th that the conversion rights for the 1st and 2nd series CBs were exercised. The amount is 10 billion KRW for the 1st series and 10 billion KRW for the 2nd series, totaling 20 billion KRW. The total number of shares is 2.5 million, which corresponds to 7.25% of the total shares. The conversion price is 8,000 KRW, and the scheduled listing date is the 25th of this month.

Lemon decided to issue the 1st and 2nd series CBs on March 29, 2019. The 1st series issuance target was Pantos Holdings, chaired by Koo Bon-ho of the 범LG family, while the 2nd series included CJW Global, TrueSam, Lee Hyun-seung, Lee Hyun-chang, Jung Seok-ho, and 17 others. The maturity date of the bonds is March 29 of next year. Lemon used 15 billion KRW of the funds raised through the CB for facility investment and the remaining 5 billion KRW for operating funds such as raw material purchases.

The closing price on the previous day was 9,130 KRW. If the current stock price is maintained until the scheduled listing date, a yield of about 14% compared to the conversion price can be recorded. CB investors could have earned even higher profits. This is because the conversion request period started on March 29 of last year. Lemon's stock price reached 23,200 KRW in April last year and was recognized as a beneficiary stock of COVID-19 due to its mask business. If conversion had occurred during this period, a profit of about 190% could have been made.

However, CB investors could not convert to stocks at that time due to the lock-up period. Lemon entered the KOSDAQ market on February 28, 2020. Since the 1st and 2nd series CBs were issued before listing, they were subject to a one-year lock-up period after listing. A Pantos Holdings official said, "CBs or bonds with warrants (BW) issued within one year from the listing date are subject to a mandatory lock-up period of one year from the listing date. Therefore, conversion was not possible, but now that the one-year lock-up period has passed, conversion applications have been made."

Founded in 2012, Lemon is a subsidiary of Toptec, a semiconductor automation equipment company. It is a specialized materials company utilizing nanotechnology. Its main business areas include high-performance electromagnetic interference (EMI) shielding components and heat dissipation sheets using nanotechnology, as well as nanomembrane materials with ultra-fine pores. In particular, through its own brand 'Air Queen,' it develops and sells nanomembrane material-based protective masks, feminine hygiene products, and sanitary pads. On an individual basis, last year's provisional sales and operating profit were 80.4 billion KRW and 16.7 billion KRW, respectively. Sales increased by 62% compared to the previous year, and operating profit turned positive.

This content was produced with the assistance of AI translation services.