Zico Decides to Raise 40 Billion KRW Through Convertible Bonds Funding

[Asia Economy Reporter Park Jihwan] Zico announced on the 17th that it has signed a memorandum of understanding (MOU) with Sambo Holdings to increase the size of the previously disclosed secured convertible bonds from 20 billion KRW to a total of 40 billion KRW.

Zico plans to make a corrected disclosure soon in accordance with the contents of this memorandum of understanding.

Of the total 40 billion KRW raised through the convertible bonds, 20 billion KRW will be used for improving the financial structure, such as repaying debts, as operating funds for the company.

The remaining 20 billion KRW will be invested in the development of raw material sectors such as automotive and construction materials as part of diversifying new businesses. According to Zico, the annual sales generated are expected to exceed the sales of existing business sectors (79.6 billion KRW in 2018).

A Zico official stated, "We signed the memorandum of understanding to increase the amount of the existing convertible bond issuance in order to fundamentally improve the financial structure."