Edgefoundry Early Buys Back 7.5 Billion Won of 16th CBs: "Blocking Dilution and Achieving Financial Stability"

KOSDAQ-listed company Edgefoundry announced on November 26 that it has proactively addressed market uncertainty by early acquiring 7.5 billion won worth of its 16th convertible bonds (CB), representing half of the total 15 billion won issuance. According to a disclosure made the previous day, the company completed the off-market purchase using its cash reserves. This move is being seen as a decisive measure by the company to directly resolve concerns over dilution that had emerged due to the potential increase in convertible bond conversions.

The background to this early acquisition lies in Edgefoundry’s complete sale of its stake in Hurim Robot (3,828,871 shares, or a 3.20% stake) on October 23. Through this sale, Edgefoundry secured approximately 22.62 billion won in liquidity, which immediately enabled the early buyback of the CBs.

This action is particularly interpreted as a preemptive “risk mitigation card” by the company ahead of the exercise period for conversion rights and put options held by financial investors, which is set for December 17.

Analysts note that by directly reducing the volume of convertible bonds at a time when potential conversion amounts were increasing due to conversion price adjustments, the company has effectively blocked dilution risk and fundamentally reduced uncertainties that could affect the stock price.

Market experts assess that Edgefoundry has achieved three simultaneous effects through this early acquisition: alleviating concerns over stock dilution, managing financial leverage, and restoring investor confidence.

They view this not as a simple CB repurchase, but as a move akin to “balance sheet rebuilding” that strategically links asset sales and financial management.

An Edgefoundry representative stated, “In a period of heightened stock price volatility, the company has directly addressed dilution factors to minimize market concerns,” adding, “We will continue to take necessary measures with a focus on financial stability and protecting shareholder value.”

Meanwhile, Edgefoundry is expected to see its thermal imaging sensor and camera business enter a phase of full-scale growth starting next year. The company aims to simultaneously expand into high value-added markets such as defense, civilian, and automotive electronics, with the goal of converting post-merger integration synergies into tangible sales revenue.