LPL » Topics » Article 15-2. (Issuance of Convertible Bonds)
This excerpt taken from the LPL 20-F filed Apr 11, 2005.
Article 15-2. (Issuance of Convertible Bonds)
The Company may issue convertible bonds to persons other than its shareholders by a resolution of the Board of Directors in any of the following cases, to the extent that the
aggregate par value amount of the convertible bonds (plus any previously issued and outstanding convertible bonds and bonds with warrants) does not exceed one (1) trillion Won:
Where the Company issues convertible bonds through a general public offering;
Where the Company issues convertible bonds for the purpose of drawing foreign investment, when it deems necessary for its management;
Where the Company issues convertible bonds to a domestic or overseas financial institution for an urgent need for funds; or
Where the Company issues convertible bonds in foreign countries in accordance with Article 192 of the SEA.
The convertible bonds referred to in Paragraph (1) above may be issued by the Board of Directors with partial conversion rights under which the right of the bondholders to demand
conversion may be limited to a certain percentage of the total amount of convertible bonds.
The classes of shares to be issued upon conversion shall be common shares for 600 billion Won of the convertible bonds, in face value, and preferred shares for 400 billion Won of
the convertible bonds, in face value. The conversion price shall not be lower than the par value of the Companys shares as determined by the Board of Directors at the time of issuance of the relevant convertible bonds.
The period during which conversion may be requested shall be from the date one (1) month after the date of issuance of the relevant convertible bonds to the date one day prior to
the redemption date of the bonds; provided, that the Board of Directors may, by its resolution, adjust the exercise period for convertible bonds within the above period.
With respect to the dividends on the shares to be issued upon conversion, Article 11 and Article 43-2, Paragraph (4) shall apply mutatis mutandis.
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