1. What Happened? : ₩10 Billion CB Issuance

RNT Technology announced a private placement of ₩10 billion in convertible bonds (CBs) on August 13, 2025. The conversion price is set at ₩7,470 with a maturity interest rate of 3%. CanvasNRed is a key investor in this offering.

2. Why the CB Issuance? : Funding Growth Initiatives

This CB issuance aims to secure funds for investments in new business areas (power semiconductors, secondary battery materials, etc.) and research and development (R&D). The need to improve financial structure following a weak Q1 performance likely contributed to this decision.

3. What’s the Impact? : Opportunities and Risks

  • Positive Aspects: Potential for new business development and financial structure improvement through secured funding.
  • Negative Aspects: Possibility of deteriorating profitability due to CB maturity interest (3%) and concerns about stock dilution from potential share increases.

While downward pressure on the stock price is expected in the short term, coupled with the weak Q1 results, the long-term growth potential of new businesses could positively influence the stock price.

4. What Should Investors Do? : A Cautious Approach

  • Short-term Investors: Be mindful of increased stock price volatility due to the CB issuance and weak earnings.
  • Long-term Investors: Continuously monitor the performance of new businesses and profitability improvement.

The influence of macroeconomic factors such as exchange rate and interest rate fluctuations should also be considered.