Linos Explores New Business Opportunities... Raises Funds by Issuing CB

[Asia Economy Reporter Hyungsoo Park] Linos announced on the 1st that it will issue convertible bonds (CB) worth 5 billion KRW to institutional investors and others for the purpose of raising operating funds.

Linos explained that although it has sufficient cash assets and financial capacity, it issued convertible bonds through a private placement to continue investment activities in the future. Both the convertible bonds' nominal interest rate and maturity interest rate are 0%. No interest will be paid even if held until maturity. The exercise price of the convertible bonds is 1,201 KRW, and a refixing option is set, allowing a downward adjustment of up to 70% after 12 months.

Although Linos experienced poor performance last year due to the impact of the COVID-19 outbreak, it is improving from this year. A company official explained that despite the poor performance, the company showed a sharp recovery this year and was able to raise funds under favorable conditions.

An investor who participated in the investment said, "The fashion brand business stagnated due to the prolonged COVID-19 pandemic, but profitability is expected to improve through the expansion of online channels," adding, "Steady growth is expected in the IT sector centered on disaster networks, and we invested based on the judgment that it is a financially sound company."

Linos plans to expand investments in new businesses by combining the raised funds with its existing cash and proceed with mergers and acquisitions (M&A). The company aims to secure new growth engines. It is reviewing various businesses that can create synergy effects with its existing fashion business. The ambition is to lay the foundation for expanding into new businesses in the future.

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