BFLABS Co.,LTD. announced a private placement of series 11 bearer-bearing interest-bearing, unsecured private convertible bonds for a gross proceeds of KRW 10,000,000,000 on February 23, 2024. The transaction will include participation from new investor BF AI Rising No. 1 Association.

The bonds have carry an interest rate of 4% and yield to maturity of 8%. The bonds will mature on April 30, 2027. The bonds will be 100% converted into 1,247,349 common shares at a fixed conversion price of KRW 8,017 per share for an equity stake of 14.52%.

The conversion period is from April 30, 2025 to March 30, 2027. The payment date of the transaction is April 30, 2024. The securities issued in the transaction are subject to a lock up period of one year.

The transaction has been approved by the board of directors of the company.