Lunit to Raise 250 Billion Won Through Rights Offering... "Addressing CB Put Option Risk"

7.9 Million Shares to Be Issued at 31,650 Won per Share
1-for-1 Bonus Issue to Follow Paid-In Capital Increase
"Securing Next-Generation Growth Engines through R&D"

Lunit is conducting a paid-in capital increase worth 250 billion won.

Overview of Lunit's Paid-in Capital Increase. Lunit

On January 30, Lunit announced that its board of directors had decided to proceed with a paid-in capital increase through a rights offering followed by a public offering of forfeited shares, as well as a bonus issue.

The paid-in capital increase amounts to a total of 250.3 billion won, with plans to issue 7,906,816 common shares at 31,650 won per share. Existing shareholders will be allocated 0.27 new shares per share held. Of the funds raised, 112.5 billion won will be used for operating expenses and 137.8 billion won will be used for debt repayment.

The record date for the allocation of new shares is March 10. The short-selling ban period related to the paid-in capital increase will run from January 31 to April 8.

The bonus issue will be conducted by allocating one new share for every share held to shareholders registered in the shareholder registry after the paid-in capital increase. The record date for the bonus issue is April 23, and the new shares are scheduled to be listed on May 4.

Lunit

This paid-in capital increase is intended to alleviate the financial burden resulting from the convertible bond (CB) put option incurred during the acquisition of Lunit International (formerly Volpara). Lunit explained, "Initially, we pursued fundraising through a third-party allocation of convertible preferred shares (CPS) and confirmed investment interest from multiple institutions. However, we determined that this method alone would not fundamentally resolve the CB put option risk, so we chose a rights offering instead."

Lunit plans to use 98.5 billion won out of the 117.8 billion won in debt repayment funds to respond to the convertible bond put option. The company intends to induce some bondholders to exercise their put options through negotiations and aims to repay or acquire 50% of the total amount. The 112.5 billion won allocated for operating expenses will be invested in research and development (R&D) and overseas business expansion to secure next-generation growth drivers.