Pavonine Co., Ltd. announced private placement to issue Series 5 Bearer-Bearing Interest-Bearing, Unsecured Private Convertible Bonds for the gross proceeds of KRW 15,000,000,000 on February 7, 2024. The transaction will include participation NH Investment & Securities Co., Ltd. (in the position of trustee of Fund 1) for KRW 200,000,000, NH Investment & Securities Co., Ltd. for (in the position of trustee of Fund 2) for KRW 300,000,000, NH Investment & Securities Co., Ltd. (in the position of trustee of Fund 3) for KRW 700,000,000, NH Investment & Securities Co., Ltd. (in the position of trustee of Fund 4) for KRW 800,000,000, Mirae Asset Securities Co., Ltd. (In the position of trustee of Fund 5) for KRW 1,100,000,000, Mirae Asset Securities Co., Ltd. (In the position of trustee of Fund 6) for KRW 700,000,000, KB Securities Co., Ltd. (In the position of trustee of Fund 7) for KRW 300,000,000, KB Securities Co., Ltd. (In the position of trustee of Fund 8) for KRW 100,000,000, KB Securities Co., Ltd. (In the position of trustee of Fund 9) for KRW 400,000,000, KB Securities Co., Ltd. (In the position of trustee of Fund 10) for KRW 400,000,000, The Korea Securities Finance Corporation (In the position of trustee of Fund 11) for KRW 1,000,000,000, KB Securities Co., Ltd. (In the position of trustee of Fund 12) for KRW 1,000,000,000, Samsung Securities Co., Ltd. (In the position of trustee of Fund 13) for KRW 1,500,000,000, Samsung Securities Co., Ltd. (In the position of trustee of Fund 14) for KRW 1,000,000,000, Korea Investment & Securities Co., Ltd. (In the position of trustee of Fund 15) for KRW 1,000,000,000, Ace Susung New Technology Fund 17 for KRW 1,000,000,000, KB Securities Co., Ltd. (In the position of trustee of Fund 16) for KRW 1,000,000,000, DB Financial Investment Co., Ltd. for KRW 1,000,000,000, Korea Investment & Securities Co., Ltd. (In the position of trustee of Fund 17) for KRW 500,000,000 and KB Securities Co., Ltd. (In the position of trustee of Fund 18) for KRW 1,000,000,000. The bonds bear zero coupon rate and 1.5% maturity rate and matures on February 14, 2029.

The bonds are 100% convertible into 4,227,733 shares at a fixed conversion price of KRW 3,548 from February 14, 2025 to January 14, 2029. The transaction has been approved by the shareholders of the company and is expected to close on February 14, 2024. The securities are restricted to a hold period.