ALTEOGEN Inc. (KOSDAQ:A196170) announced a private placement of 203,385 registered convertible preferred stock at a price of KRW 147,500 per share for the gross proceeds of KRW 29,999,287,500 on November 4, 2020. The transaction will include participation from Asset One a fund managed by Korea Securities Finance Corporation for 33,897 pereferred stock, Asset One Fund 3 a fund managed by Shinhan Bank for 27,118 preferred shares, Asset One Fund 4 a fund managed by Shinhan Bank for 6,779 preferred shares, Korea Investment Holdings Co., Ltd. (KOSE:A071050) for 67,796 preferred shares, SLi Quantum Growth Fund a fund managed by SL Investment for 20,338 preferred shares and Future Growth Strategy Bio New Technology Investment Fund for 47,457 preferred shares. The shares will be issued at 10% discount on theoretical ex-rights share price.

The preferred shares are convertible into common shares of the company on November 13, 2021 and November 12, 2025. The shares carry dividend rate of 1% per annum. The transaction is expected to close on November 12, 2020.

The securities being issued in the transaction are subject to a lock-up period of 1 year. The transaction was approved by board of directors of the company.