1. What Happened? : 6.9 Billion Won Treasury Stock Disposal Announced

On August 11, 2025, Dongbang Agro announced the disposal of 1 million treasury shares, representing 7.34% of its total outstanding shares. This decision aims to raise funds for convertible bond issuance.

2. Why This Decision? : Funding Through Convertible Bonds

Convertible bonds offer the holder the right to convert them into company shares. Dongbang Agro intends to raise capital without issuing new shares by leveraging its treasury stock. The proceeds will be used for growth investments or to improve its financial structure.

3. What’s the Impact on Stock Price? : Opportunities and Risks Coexist

  • Positive Aspects: The expectation of securing growth momentum and improving financial structure through fundraising can positively impact the stock price. The disposal of treasury stock during a period of declining share prices can also have a stabilizing effect.
  • Negative Aspects: The disposal of 1 million shares may increase market supply, and the potential dilution of shares upon conversion of the convertible bonds could exert downward pressure on the stock price.

While Q1 earnings showed sales growth, the decline in profitability due to increased investment should be noted. Macroeconomic factors such as exchange rates and interest rates can also influence the stock price.

4. What Should Investors Do? : Careful Observation and Prudent Investment

Currently, a ‘neutral’ investment opinion is maintained. Closely monitor the terms of the convertible bond issuance, the company’s plans for utilizing the funds, and future earnings trends. Prudent investment decisions based on long-term growth potential rather than short-term stock price fluctuations are essential.