Solueta Co., Ltd. (KOSDAQ:A154040) announced a private placement of series 4 non-guaranteed private equity convertible bonds for gross proceeds of KRW 3,000,000,000 and series 5 non-guaranteed private equity convertible bonds for gross proceeds of KRW 5,600,000,000 for an aggregate gross proceeds of 8,600,000,000 on May 12, 2020. The transaction will involve participation from new investors, Korea Investment & Securities Co., Ltd., Investment Arm for KRW 2,800,000,000 and Mirae Asset Daewoo Co., Ltd., Investment Arm for KRW 200,000,000 and returning investor DASAN Networks, Inc. (KOSDAQ:A039560) for KRW 5,600,000,000. The bonds will mature on May 14, 2024.

The series 4 bonds do not carry any coupon and yield to maturity of 1% per annum. The series 4 bonds are 100% convertible into 1,207,242 common shares of the company at a fixed conversion price of KRW 2,485 per share. The conversion period is from May 14, 2021 to April 14, 2024.

The transaction is expected to close on May 14, 2020. The transaction has been approved by the board of directors of the company. The series 5 bonds carry an interest rate of 1%.

The series 5 bonds are convertible into 2,253,521 common shares at a fixed conversion price of KRW 2,485 per share.