Vesel Cancels 5 Billion Won Convertible Bonds... "Expecting to Alleviate Overhang Concerns"

[Asia Economy Reporter Jang Hyowon] Vessel announced on the 12th that it has decided to cancel 5 billion KRW worth of its own bonds (5th tranche convertible bonds). Vessel also stated that it plans to hold 3.15 billion KRW, equivalent to 70% of the 4.5 billion KRW 6th tranche convertible bonds, as its own bonds.

A Vessel official explained, "If all 10.5 billion KRW of the existing 5th and 6th tranche convertible bonds were converted into shares, more than 2.55 million shares, exceeding 20% of the current total issued shares, would be supplied, inevitably causing market shock," adding, "We decided to cancel our own bonds to protect investors."

Accordingly, the amount of convertible bonds from the 5th and 6th tranches that bondholders can actually convert into shares will be about 2.35 billion KRW. Among these, bonds equivalent to about 360,000 shares (1.475 billion KRW) have already completed conversion requests, leaving the remaining bond principal amount held by bondholders at 875 million KRW (about 210,000 shares).

The official said, "With customer orders delayed due to the COVID-19 pandemic now pouring in, rapid performance improvement is expected," and added, "The subsidiary Vessel Aerospace is also gaining attention as a beneficiary stock in the upcoming Urban Air Mobility (UAM) era."

He continued, "SKCS, a KONEX-listed company newly included as a consolidated subsidiary last year, has also succeeded in turning a profit for the first time in five years, with new product launches lined up one after another."