Suseong Webtoon "Enhancing Shareholder Value through Convertible Bond Purchase and Cancellation"... 22nd CB Cancellation

Suseong Webtoon announced on the 3rd that it purchased and canceled 2.1 billion KRW, which is 40% of the 22nd series convertible bonds, following an early redemption request. The company plans to continue additional purchases and cancellations of convertible bonds to enhance shareholder asset value and re-evaluate corporate value.

Previously, Suseong Webtoon fully converted 15 billion KRW of the 21st series convertible bonds held by the major shareholder of Toomics Holdings. Through this, Toomics Holdings' stake in Suseong Webtoon exceeded 50%. The remaining 8 billion KRW of the 21st series convertible bonds are already fully secured by cash collateral, making them redeemable at any time. The company has communicated its intention to redeem and cancel to the convertible bond investors. A Suseong Webtoon official stated, "We have a clear intention to purchase and cancel the convertible bonds to actively enhance shareholder value."

Suseong Webtoon's management continuously expresses their commitment to responsible management by consecutively purchasing and canceling convertible bonds. CEO Yoo Young-hak of Suseong Webtoon explained, "We will continue to purchase and cancel convertible bonds to demonstrate confidence in management performance and stabilize shareholders' investment sentiment."

Suseong Webtoon is aiming to solidify its position as a specialized webtoon company and leap forward as a global webtoon enterprise, viewing this year as an opportunity to return to profitability. First, it secured a 70.2% stake in its subsidiary Toomics, which is expected to exceed annual sales of 60 billion KRW and operating profit of 11.5 billion KRW this year. The company plans to acquire additional shares to make it a 100% subsidiary. It is expected to become a subsidiary by the first quarter of next year.

As part of enhancing corporate value, a reverse stock split will be conducted, suspending stock trading from the 2nd to the 23rd. The reverse split will take effect on the 4th, and shares with a face value of 5,000 KRW will be listed on the 23rd. The number of issued shares will be reduced to approximately 16 million.

Suseong Webtoon plans to continuously pursue not only external growth but also shareholder value enhancement. CEO Yoo Young-hak said, "The responsibility for management performance is significant, corresponding to the scale of convertible bonds converted into common stock."

Suseong Webtoon started forklift production in 1973 and has over 50 years of business history. It owns subsidiaries including Toomics, a specialized webtoon company; Future High Tech, a semiconductor parts and equipment company for HBM; and The Queen AMC, which includes actress Kim Nam-joo among its affiliates.