Luxury platform BALAN secured an investment of 15 billion won from K-Beauty distribution company SILICON2. This investment involves SILICON2 acquiring convertible bonds (CB) issued by BALAN. SILICON2 has become able to secure a major shareholder status while monitoring the performance improvement of BALAN.
SILICON2 announced on the 28th that it will acquire 15 billion won worth of BALAN's private CB. This amounts to 11% of SILICON2's equity of 136.3 billion won. SILICON2 noted this as a "strategic investment and securing equity for stable management rights."
The conversion price of the acquired CB is 61,171 won, and the conversion request period is from Feb. 28, 2026, to Feb. 27, 2030. The investor will acquire the CB maturing on Feb. 28, 2030, under a maturity interest rate condition of 4%.
According to the announcement, SILICON2 also holds a call option. From the day the audit report for the 2027 fiscal year is announced until the end of 2028, it will have the call option to secure 50% of BALAN's equity.
The investment will be conducted in two stages. Initially, 7.5 billion won will be invested, and if certain conditions are met, an additional 7.5 billion won will be invested in the second stage. SILICON2 has set conditions for the second investment, including that from November this year, for two consecutive months, BALAN's direct purchase sales ratio of monthly sales must exceed 50%, and it must achieve monthly operating profit.
Founded in 2002, SILICON2 is a cosmetics distribution trading company that entered the KOSDAQ in September 2021. It operates the K-Beauty reverse purchasing platform "Stylekorean.com" and sells Korean cosmetics to over 100 countries worldwide.
BALAN is considered one of the three major online luxury platforms along with MUSTIT and TRENB. "With this investment, we aim to expand our presence in the global market and become a more competitive luxury platform," it stated.