[Correction·Post-IPO] TS Trillion, CEO Jang Ki-young's Family Also Sold... Beware of Volume Bomb Warning③

※In the article '(Post-IPO) TS Trillion, CEO Jang Ki-young's family also sold... Bombshell volume warning③' published at 9:08 AM on December 2, the phrase 'Shares can be sold starting two days before the scheduled listing date' in the fifth paragraph was deleted after confirming that the first tranche CB is under lock-up. Also, the phrase 'About 410 million won worth of first tranche CB that can be converted immediately remains' in the seventh paragraph was deleted after confirming that the first tranche CB has already been converted into shares.

[Asia Economy Reporter Jang Hyowon] The convertible bonds (CB) of TS Trillion, a KOSDAQ-listed company selling the hair loss shampoo 'TS Shampoo,' are being converted into shares and released into the market. The volume being converted this time accounts for about 2% of the total shares, but even excluding this, a large amount of CB remains, which is expected to be a burden. In addition, the lock-up on shares held by the largest shareholders and others will be lifted this month, drawing market attention.

However, prior to this, it was revealed that the family of Jang Ki-young, CEO of TS Trillion, sold some shares to cash out.

According to the Financial Supervisory Service's electronic disclosure on the 2nd, Jang Ki-hoon, a relative of CEO Jang Ki-young, sold 116,420 shares on the market on the 24th of last month. The disposal price was around 941 to 945 won per share, totaling about 106 million won.

Although the sale volume is not large, the fact that the company CEO's family sold shares has increased market anxiety. In fact, TS Trillion's stock price continued to fall after Mr. Jang sold shares, dropping to 777 won as of the previous day's closing price.

In this situation, it was found that a large volume of shares will be released additionally. First, on the 6th, the first tranche convertible bonds (CB) will be converted and listed. A total of 1,594,982 shares, accounting for 1.75% of the total issued shares, will be released into the market.

This CB was issued by the existing SPAC before TS Trillion's SPAC listing last year. It is estimated to be held by the listing underwriter, Hi Investment & Securities. The conversion price per share is 558 won, about 28% lower than the current stock price.

The CB volume does not end here. The second tranche CB, convertible from April, is also waiting with a scale of 12 billion won. However, the conversion price of the second tranche CB has dropped to the refixing limit of 1,142 won, so it is uncertain whether it will actually be converted.

The put option exercise date for the second tranche CB is from April 2023, and if TS Trillion's stock price does not exceed the conversion price by then, there is a possibility of a redemption request. In this case, TS Trillion may face liquidity pressure. As of the end of the third quarter this year, TS Trillion's cash equivalents stood at about 1.3 billion won. If the stock price rises, there will be pressure from the volume; if it falls, financial pressure will arise.

Not only CBs but also shares locked under lock-up from last year's listing are scheduled to be released. At that time, 68.59% of shares held by CEO Jang Ki-young and his immediate family were under lock-up for 12 months from the listing date. The lock-up will be fully lifted on the 30th of this month.

Already, 7.43% of shares held by some relatives with a 6-month lock-up set in June have been released from lock-up. Accordingly, Mr. Jang was able to sell shares on the 24th of last month.

Meanwhile, TS Trillion recorded cumulative sales of 38 billion won and an operating loss of 4.3 billion won as of the end of the third quarter on a consolidated basis. Sales decreased by 15% compared to the same period last year, and operating profit turned to a loss. This is far from the operating profit forecast of 10 billion won presented by the company at the time of listing last year, and the stock price continues to decline.