Advanced Digital Chips Inc. (KOSDAQ:A054630) announced a private placement of 1st series unregistered coupon unguaranteed private non-detachable bonds with warrants for gross proceeds of KRW 4,000,000,000 on July 12, 2018. The transaction will include participation from new investor Hanyang Securities Co. Ltd. The bonds carry coupon rate and yield to maturity of 3%.

The bonds are issued at par value. The bonds will mature on July 16, 2021. The non-detachable warrants will be exercised into 2,220,988 shares from July 17, 2019 to July 16, 2021.

The bonds are fully convertible into warrants at an exercise price of KRW 1,801 per warrant share of the company. The subscription and payment date is July 16, 2018. The transaction has been approved by the board of directors of the company.