KOSDAQ-listed BITMAX will convert previously issued convertible bonds (CB) to no-interest terms to improve its financial structure.
BITMAX said on the 9th it will completely remove the coupon interest and the yield-to-maturity guarantee on its 2nd, 3rd and 4th CBs. The move was finalized with the consent of all creditors, and the company expects it will be able to save more than 3 billion won a year in fixed financial costs.
By adjusting the CB interest rate, previously as high as 4.9%–5%, to 0%, BITMAX completed a leverage structure in which operating profit flows directly to net profit. A company official said, "Annual interest expense savings of more than 3 billion won will translate directly into improved pre-tax profit," adding, "This is expected to be a powerful trigger for a share price rise by boosting earnings per share (EPS)."
BITMAX has proactively pursued capital structure management, including acquiring 10 billion won of its 4th tranche convertible bonds before maturity for redemption and cancellation. The no-interest CB measure is also seen as an extension of its strategy to strengthen financial soundness. It is a step that eases market concerns over potential selling volume (overhang) and signals a commitment to protecting shareholder value.
BITMAX plans to actively use the cash liquidity secured by reducing financial expenses to enhance corporate value through investment in new businesses, research and development (R&D), and shareholder return policies.
A company official said, "This is a strategic decision to fundamentally improve the company's financial base and secure the capacity for sustainable growth investment," adding, "With the shackle of interest expenses removed, we will accelerate a performance turnaround, bolster market confidence, and ensure shareholders receive a fair assessment of corporate value."