ATON said on the 21st that on the 20th its board of directors resolved to cancel 368,437 treasury shares and to issue about 5 billion won in exchange bonds.
The decision is a strategy to pursue immediate shareholder returns through the cancellation of treasury shares while simultaneously securing growth investment resources by issuing zero-interest exchange bonds. The company said it allocated most of its existing treasury shares in a balanced manner to shareholder interests and business expansion.
The company said it judged that this is the time for aggressive R&D investment to respond to the recent surge in security threats and the spread of innovative technologies. It also plans to secure medium- to long-term growth engines through overseas expansion of newly launched services and businesses linked to artificial intelligence (AI)-based cloud security and digital assets.
To raise the investment resources described above, the company resolved to issue unsecured bearer private exchange bonds with about 660,000 remaining treasury shares as the exchange target to raise 5 billion won in funds. Both the coupon rate and the yield to maturity are 0%, so no financing costs will be incurred, and the maturity date is Nov. 28, 2030. Because existing treasury shares are used without issuing new shares, equity dilution for existing shareholders can be minimized, unlike a paid-in capital increase or convertible bonds.
The funds will be concentrated in next-generation businesses, including: ▲ AI-based cloud security ▲ expansion of overseas marketing for the smart crime prevention service ▲ technology development for new businesses related to digital assets, including CBDC and stablecoins.
The company will cancel 368,437 shares, or 30.0% of its treasury shares, reducing the total number of shares outstanding by about 1.5%. This directly translates into an increase in the per-share value of existing shares. The cancellation date is Nov. 28, and the remaining treasury shares will be used for future employee compensation, including stock options.
An ATON official said, "We expect this board resolution, a strategic decision that can simultaneously enhance shareholder value and secure financial stability, to contribute in the long term to improving corporate value and expanding shareholder interests."