Sacheon Aerospace Manufacturing Ind. Co., Ltd announced a private placement of series 4 non-guaranteed private equity convertible bonds with bearer type interest part for gross proceeds of KRW 5,000,000,000 and 2,800,000 shares of par value, KRW 500 at a price of KRW 500 per share for gross proceeds of KRW 1,400,000,000 for aggregate gross proceeds of KRW 6,400,000,000 on February 10, 2022. The transaction will include participation from Group Earth for bonds and 2,550,000 shares and Se-na Kim for 250,000 shares.

The bonds have yield to maturity of 12%. The bonds will mature on March 30, 2025. The bonds will be 100% converted into 10,000,000 common shares at a fixed conversion price of KRW 500 per share for an equity stake of 77.3%.

The conversion period is from March 30, 2023, to February 28, 2025. The payment date for bonds is March 30, 2022 and for shares is February 24, 2022. The company is issuing shares through third-party allotment.

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. Prior to the transaction, the total number of shares issued are 2,935,747 shares.