Vallop Issues 3 Billion KRW Convertible Bonds

Velop, a republishing specialized platform company, announced on the 30th that it has decided to issue convertible bonds (CB) worth 3 billion KRW as funding to secure IP and publishing rights suitable for the global market for business expansion and focusing on core competencies.

This CB is an anonymous bearer, interest-bearing, unsecured private convertible bond issued to the ‘Synergy IB Win-Win Innovation New Technology Investment Association,’ with IBK Industrial Bank of Korea as the largest investor. NH Investment & Securities acted as the lead manager.

Velop is strengthening its competitiveness through continuous republishing game releases based on IP. The open beta test of O2Jam Remix, which surpassed 80,000 pre-registrations, began on the 29th. After the first and second tests, the graphics were improved to enhance user convenience, and the company is actively incorporating user feedback to improve the game's completeness. In May, Velop secured a foothold for entering the Greater China market by signing a secondary development, production, and publishing contract using the Kritika IP with Jiangsu Huanwu in China.

Velop recorded its highest-ever net profit of 2.3 billion KRW in the second quarter of this year. This is analyzed as a result of reflecting the business acquisition of Last Origin. Sales reached 17.8 billion KRW, and the company stated that results in overseas markets are gradually appearing. The overseas sales ratio is about 77%, expanding performance in overseas markets such as North America, China, Thailand, and Japan.

A Velop official stated, “The CB has a 0% nominal interest rate and maturity interest rate, and does not include a conversion price adjustment (Refixing) condition. Although the conversion price is issued under a difficult condition of a 110% increase from the base price, many investors hoped to participate, recognizing the company’s future value highly, but we will strategically utilize only the necessary funds for global market expansion.”

He added, “The funds will be used for infrastructure costs for business area expansion and new service establishment by securing IP and publishing rights suitable for the global market, thereby expanding the foundation for company growth. We will effectively republish promising hit games to promote continuous sales growth.”