Lake Material Issues 50 Billion Won Zero-Interest Convertible Bonds

Lake Material has completed the issuance of convertible bonds (CB) worth 50 billion Korean won, aimed at financing the expansion of its semiconductor and all-solid-state battery operations. The bonds, underwritten by major firms including Mirae Asset Securities and KB Securities, feature a conversion price set at 23,839 Korean won, 10% above the stock price on the base date, with no conversion price adjustment clause.

Investors are anticipated to convert approximately 2.09 million shares if the bonds are fully exercised. The company plans to allocate 10 billion won of the proceeds to enhance its semiconductor facilities and support its subsidiary, Lake Technology, which focuses on lithium sulfide production. Despite recent profitability challenges due to declining margins, Lake Material aims to solidify its position in the semiconductor market and grow its all-solid-state battery business, targeting a 1,000-ton lithium sulfide production line by 2030.