AeroSpace Technology of Korea Inc. announced a private placement to issue Series 9 Bearer-Bearing Interest Bearing, Unsecured Private Convertible Bonds for the gross proceeds of KRW 56,000,000,000 on March 6, 2024. The transaction will include participation from new investors Eugene Shinyoung Corporate Structure Innovation Corporate Financial Stability PEF for KRW 10,000,000,000, Shinhan-SKS Corporate Financial Stability PEF for KRW 30,000,000,000, Shinhan Capital Co., Ltd. for KRW 5,000,000,000, Yuil - Aero Innovation No. 1 New Technology Fund for KRW 10,000,000,000 and Almec Korea Co., Ltd. for KRW 1,000,000,000.

The bonds bear 1% coupon rate and 5.5% maturity rate and matures on September 12, 2027. The bonds are 100% convertible into 112,000,000 shares at a fixed conversion price of KRW 500 from March 13, 2025 to August 12, 2027. The securities are restricted to a hold period.

The transaction has been approved by the shareholders and is expected to close on March 12, 2024.