Medifron DBT Co Ltd (KOSDAQ:A065650) announced a private placement of series 7 non guaranteed private equity convertible bonds for gross proceeds of KRW 5,600,000,000 and 987,360 shares at the price of KRW 2,532 per share for gross proceeds of KRW 2,499,995,200 for total proceeds of 8,099,995,200 on April 20, 2020. The transaction will include participation from Bio Frontier Investment Association. The bonds carry 0% coupon rate, 2% yield to maturity, will mature on May 12, 2024, and are 100% convertible into 1,882,985 common shares of the company representing 5.20% stake, at a fixed conversion price of KRW 2,974 per share from May 12, 2021 till April 12, 2024.

The transaction will include participation from existing investors Brain Contents CO., LTD. who will acquire 394,944 shares, Global Tax Free Co., Ltd. who will acquire 394,944 shares, and Yanggeun Moon who will acquire 197,472 shares. The bonds have lump-sum redemption of principal on maturity date. The payment date for the transaction is May 12, 2020.

The securities will have a lock up for 1 year. The scheduled listing date for new share is May 26, 2020 The transaction has been approved by the board of directors of the company.