Humedics Decides to Cancel Convertible Bonds Worth 18 Billion KRW to "Enhance Shareholder Value"

"Practicing Responsible Management... Will Enhance Group Trustworthiness"

Humedix announced on the 7th that it will exercise the call option on the convertible bonds worth 45 billion KRW issued in April 2021.

[Image provided by Humedics]

The call option amount is 18 billion KRW, which is 40% of the maximum exercisable issuance price. The conversion price is 21,450 KRW, the minimum limit adjusted in October last year.

Humedix explained that with this cancellation decision, 18 billion KRW (839,160 shares) out of the existing 45 billion KRW (2,097,902 shares) will be reduced, lowering the number of convertible shares to 1,258,742 shares (11.1%).

Due to the recent stock price increase, convertible bond investors have requested conversion of convertible bonds worth 6 billion KRW, and the number of shares requested for conversion is 279,720 shares, which is 2.8% of the total issued shares.

Humedix stated that it decided on this convertible bond call option to strengthen responsible management and maximize shareholder value. The plan is to exercise the convertible bond call option and cancel all of it to resolve the overhang (potential sell-off volume). Additionally, the company mentioned that it is implementing various shareholder return policies such as announcing mid- to long-term dividend policies and acquiring treasury shares.

A Humedix official said, "By exercising the convertible bond call option and canceling all of it, we will reduce the potential convertible volume and increase shareholder value," adding, "We will develop various policies to enhance company value and maximize shareholder value, further improving the group's credibility."

Meanwhile, Humedix's standalone sales last year increased by 11% compared to the previous year to 123.2 billion KRW, and operating profit grew by 71% to 27.3 billion KRW. Net profit for the period rose by 134% year-on-year to 23.5 billion KRW.

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