Shinsung Delta Tech Co.,Ltd. (KOSDAQ:A065350) announced a private placement of 3rd series unregistered and unsecured convertible bonds for gross proceeds of KRW 10,000,000,000 on September 19, 2018. The transaction will include participation from Synergy Asset Management Co., Ltd. for KRW 4,500,000,000; IBK Financial Group Synergy Mezzanine New Technology Fund for KRW 500,000,000; Susung Asset Management Co., Ltd. for KRW 1,500,000,000; Korea Securities Finance Corporation representing A1 Type A Mezzanine Hedge Fund, A1 Type B Mezzanine Hedge Fund, A1 Type A Convertible Hedge Fund, A1 Type B Convertible Hedge Fund, A1 Convertible KOSDAQ Venture Hedge Fund, A1 Type B Premium Hedge Fund, PineAsia A1 Value Up Mezzanine Investment Type Fund and PineAsia A1 Prime Mezzanine Hedge Fund for KRW 1,750,000,000; Samsung Securities Co.,Ltd. (KOSE:A016360) representing A1 Convertible KOSDAQ Venture Hedge Fund and A1 Plus KOSDAQ Venture Hedge Fund for KRW 400,000,000; NH Investment & Securities Co., Ltd. (KOSE:A005940) representing A1 Type B Grand Prix Hedge Fund and A1 Type B prime Hedge Fund for KRW 600,000,000; KB Securities Co.,Ltd representing A1 Premium KOSDAQ Venture Hedge Fund and Susung Mezzanine High Yield Hedge Fund for KRW 450,000,000 and Shinhan Financial Group Co., Ltd. (KOSE:A055550) representing Susung KOSDAQ Venture Privilege Hedge Fund for KRW 300,000,000. The does not bear any interest and yield to maturity and matures on September 21, 2023.

The bonds are fully convertible into 2,314,814 shares representing 8.74% stake at a fixed conversion price of KRW 4,320 per share from September 21, 2019 to August 21, 2023. The bonds will contain a call option for company and put option for bondholders for early redemption. The expected subscription and payment date is September 21, 2018.

The transaction has been approved by the board of directors of the company. The conversion of bonds is restricted for a period of 1 year from issue.