On June 30, JLK, an AI stroke solution specialist led by CEO Kim Dongmin, announced that it has decided to issue privately placed, non-guaranteed, zero-coupon convertible bonds (CB) with a total value of 11.9 billion KRW.
The company stated that there will be no refixing (adjustment of conversion price due to a decline in market price), and both the coupon rate and yield to maturity (YTM) are set at 0%. The funds raised through this issuance will be used as operating capital. The maturity date is July 2, 2030, and the conversion price is 6,709 KRW. The number of shares to be issued is 1,773,736, which accounts for 6.58% of the total shares outstanding. The conversion period for this CB is from one year after issuance until one month before maturity. Additionally, a put option can be exercised every three months after 24 months from the issuance date.
The conversion price is set at 100% of the market price at the time of issuance, without any premium. The funds secured will be strategically invested in research and development, empirical clinical trials, regulatory approvals, and marketing to expand into the Japanese market.
In particular, the absence of a refixing clause in this CB issuance demonstrates the confidence of both the company and CB investors that the stock price will not decline, as well as their conviction in the company's value-up (corporate value enhancement) plan. Effectively, this is a bet on a stock price increase, leaving capital gains after conversion as the sole option for investors.
In a high-interest-rate market, the conclusion of a CB investment contract under such favorable conditions is interpreted as evidence that institutional investors have strong confidence in the company's future value.
Furthermore, with a company-friendly structure (as the absence of refixing allows the conversion rights to be classified as equity), the company has attracted capital without interest burden while maintaining financial soundness.
JLK plans to accelerate global regulatory expansion, solution advancement, and hospital integration businesses, focusing on the United States and Japan. The company will simultaneously pursue entry into hospitals in both the United States and Japan to grow its overseas business.
A JLK representative stated, "This CB issuance was made possible based on institutional investors' trust in the company's long-term growth potential and global expansion prospects. We believe the company is relatively undervalued in the market, and by securing both financial stability and growth engines through this funding, we will meet market expectations with tangible results both domestically and internationally."
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