TSI Co., Ltd. (KOSDAQ:A277880) announced a private placement of round 2 non-guaranteed private equity convertible bonds for gross proceeds of KRW 22,000,000 on May 31, 2021. The transaction will include participation from GB Holdings 2 Co., Ltd for KRW 17,000,000,000, Creative & Innovative System Corporation (KOSDAQ:A222080) for KRW 3,000,000,000, and returning investor Korea Investment & Securities Co., Ltd., Investment Arm for KRW 2,000,000,000. The bonds carry no coupon and yield to maturity, and will mature on June 8, 2026.

The bonds are fully convertible into 1,785,714 shares at a conversion price of KRW 12,320 per share which represents 8.79% stake in the company. The conversion period starts for all the bonds starts from June 9, 2022 to June 7, 2026. The bonds have a hold period of one year.

The transaction is expected to close on June 8, 2021. The transaction has been approved by the board of the directors of the company.