SAMG Entertainment to Retire 9 Billion Won in Shares Issued Upon CB Conversion

• – Move eliminates 3.8% potential dilution following call option exercise

Global IP content company SAMG Entertainment(CEO Suhoon Kim) said its board has approved the retirement of shares worth 9 billion won that were acquired through a recent call option on convertible bonds (CBs).

The retirement covers 376,206 shares, representing approximately 3.83% of the company’s 9,824,515 outstanding shares.

The shares were issued upon conversion of the bonds at 23,923 won per share. Although the conversion price was below the current market price, SAMG Entertainment chose to retire the shares rather than reissue them to raise capital.

The company said the move is intended to address potential market overhang and reduce dilution risk, while maintaining capital structure stability.

Following the retirement, SAMG Entertainment expects lower share supply uncertainty, which could allow its operating performance to be more directly reflected in its stock price over time.

The decision comes after the company’s financial turnaround. In its 2025 consolidated results, SAMG Entertainment reported revenue of 141.2 billion won and operating profit of 22.6 billion won, marking a return to annual profitability. Operating margin reached 16%, compared with a loss a year earlier.

A SAMG Entertainment spokesperson said the share retirement reflects management’s focus on long-term value creation and continued expansion of its global character and animation IP portfolio.