Immuno-Biological Laboratories Co., Ltd. (JASDAQ:4570) announced private placement of shares, 1st series unsecured convertible bonds with warrants, and 2nd series warrants for gross proceeds of ¥406,306,000 on February 12, 2016. The company will issue 205,000 shares at a price of ¥978 per share for ¥200,490,000. New investor, Trans Genic Inc will subscribe shares in the transaction and will acquire 3.04% stake in the company.

The company will issue 20 bonds at ¥10,000,000 per bond with 20 warrants for ¥200,000,000. Each warrant is convertible into 10,000 shares. The bonds will carry fixed interest rate of 0.3% and will mature on March 1, 2021.

The bonds will be issued at par and are redeemable at its face value. The bonds and warrants will be allotted through third party allotment method. The bonds are convertible at ¥1,000 per share.

These warrants are exercisable from March 2, 2016 to February 22, 2021. The bonds with warrants and shares will be issued to new investor Trans Genic Inc. Upon the conversion of bonds, Trans Genic Inc will hold 405,000 shares representing 5.83% stake in the company. The company will also issue 8,000 2nd series warrants at ¥727 per warrant for gross proceeds of ¥5,816,000.

The warrants are exercisable at ¥840 per share from March 2, 2016 to March 1, 2018. These warrants will be allotted through third party allotment method to Merrill Lynch Japan Securities Co., Ltd., Investment Arm. The company will incur issue costs of ¥15,000,000.

The transaction is expected to be close by March 1, 2016.