Pluto (CEO Lee Jeong-su), an artificial intelligence (AI) language data company, announced on the 26th that it has decided to burn all of its 4 billion won worth of convertible bonds (CB). The burn date is the 30th, and the amount corresponds to the entire amount of convertible bonds it holds.
Pluto issued its first convertible bond worth 10 billion won in November 2021, of which 6 billion won was converted into stocks in January of this year. The remaining 4 billion won was purchased and held as treasury bonds, but this full burn has resolved concerns over overhang, which could lead to potential selling volume being released to the market.
This measure is part of Pluto's efforts to improve its corporate value. It is an expression of financial confidence that it can resolve the overhang issue and secure operating and R&D funds from profits as a profit-making company.
Pluto recorded its highest annual sales since its founding last year and successfully turned its operating profit into a surplus. It continued its surplus trend in the first quarter of this year, achieving operating profit for three consecutive quarters, proving profitability and growth that are rare in the domestic AI industry. In addition, it is further strengthening its competitiveness in the global market by signing large-scale language data supply contracts with global companies early this year.
Yoon Min-yong, CFO of Pluto, said, “Enhancing shareholder value from a mid- to long-term perspective is the company’s top priority,” adding, “This convertible bond burn decision was made based on a substantial profit base, and we will secure a stable profit structure and a sustainable growth engine.”
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