J'sco Holdings Strives to Resolve Overhang... "Enhancing Corporate Value Through Nickel Ore Mining Business"

JSCO Holdings announced on the 4th that it is making every effort to resolve the overhang (potential sell-off volume) risk through company-level control of tradable shares.

JSCO Holdings has started controlling the already issued volumes such as the 1st tranche convertible bonds (CB) and the 2nd tranche bonds with warrants (BW). Additionally, as the Philippine nickel ore mining project is progressing smoothly, the company expects its corporate value to further improve in the future.

Regarding the 38 billion KRW scale 1st tranche CB issued to Decaconix, about 27 billion KRW remains excluding the shares already converted. JSCO Holdings acquired 24 billion KRW through the exercise of the put option (call option) on the 27th, and some of these will be resold for the exclusive sales rights contract of the Philippine nickel mine, while the remaining balance will be entirely canceled.

Currently, the 2nd tranche BW convertible into approximately 3.08 million shares includes 840,000 shares held by the largest shareholder and related parties, which are unlikely to be sold. The remaining volume is 2.24 million shares, which can be converted after an additional cash payment of 1,715 KRW per share on top of the exercise price of 1,800 KRW per share.

JSCO Holdings is scheduled to complete a paid-in capital increase of 9 billion KRW to J&P Investment Association on the 28th of next month. Once the payment is completed, a one-year lock-up will be set. The convertible period for the 40 billion KRW scale 3rd tranche CB recently issued to Meritz Securities is April 27th of next year.

A company official stated, “The 1st tranche CB acquired through the call option will be resold to investors with a high understanding of the Philippine nickel ore mining project to minimize sell-off volume, and the remaining balance will be canceled to focus on enhancing shareholder value.” He added, “The 3rd tranche CB and the capital increase are under lock-up, so there is no possibility of sale for the time being.”

He further added, “If nickel mine mining proceeds as planned early next year, both corporate value and shareholder value will be maximized.”

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