Kukdong Corporation announced a private placement of series 14th bearer type interest part unguaranteed private placement convertible bond for gross proceeds of KRW 5,000,000,000; series 15 non-guaranteed interest part convertible bond for proceeds of KRW 5,000,000,000; and 4,283,967 common shares at the price of KRW 1,634 per share for gross proceeds of KRW 7,000,002,078; for aggregate gross proceeds of KRW 17,000,002,078 on July 11, 2022. The transaction will include participation from Green Snake New Technology Association No. 3 for series 14 bonds, Termini Comsortium for series 15 bonds from Lx Company Co., Ltd. for 3,059,976 shares and Won, Seong-jun for 1,223,991 shares.

The bonds carry surface interest rate of 2% and interest rate to maturity of 2% per annum. The series 14 bonds will mature on September 23, 2025 and series 15 bonds will mature on October 12, 2025. The bonds are fully convertible into 2,738,225 shares of the company at a conversion price of KRW 1,826 per share.

The conversion period will start from October 12, 2022 and ends on October 12, 2024 for series 15 and conversion period will start September 23, 2022 and will end on September 23, 2024 for series 14 bonds. The transaction is expected to close on October 12, 2022 for series 15 and September 23, 2022 for series 14 and common shares. The transaction has been approved by the board of directors of the company.

Series 15 bonds carry a hold period of one year.