Samjinfood to issue W10b bond with warrants

Samjinfood said Wednesday it will issue a bond with warrants worth 10 billion won ($7.39 million) to secure investment capital aimed at strengthening its medium- to long-term growth foundation.

The warrant exercise price has been set at 7,427 won per share, a roughly 40% premium over the reference share price. The bond carries a three-year maturity with a coupon rate and yield to maturity both set at 0%. A refixing clause — which would lower the exercise price in response to share price movements — will not apply.

"The premium exercise price and the absence of a refixing clause reflect expectations for the company's future corporate value and growth potential," a Samjinfood official said.

Samjinfood may exercise a call option on up to 50% of the total issuance within two and a half years of the issue date. Under this structure, any warrants attached to bonds subject to the call are also retrieved, meaning the potential volume of new shares that could be issued may decrease depending on how the option is exercised.

The company plans to invest the bulk of the proceeds in a new factory to expand exports and build production capacity for new seafood protein-based products.

"This fundraising is focused on medium- to long-term growth investment — expanding production infrastructure, upgrading manufacturing processes and strengthening brand competitiveness — rather than short-term operational needs," the official said.