Mediforum Pharmaceutical Incorporation (KOSDAQ:A047920) announced a private placement of series 10 bearer's interest free non-guaranteed private equity convertible bonds for gross proceeds of KRW 10,000,000,000, 4,459,308 common shares at a price of KRW 4,485 per share of KRW 19,999,996,380 and 4,154,511 common share at a price of KRW 4,485 per share for gross proceeds of KRW 18,632,981,835 for aggregate gross proceeds of KRW 48,632,978,215 on October 16, 2019. The transaction will include participation from EBEST Investment & Securities Co., Ltd. (KOSDAQ:A078020) for KRW 10,000,000,000 and Medi Forum Co.,Ltd for KRW 38,632,978,215. The bond will have surface rate of interest 1% per annum and maturity rate of interest of 1% per annum.

The bonds will mature on December 10, 2022. The bonds are convertible into 1,908,397 common share of the company at a conversion price of KRW 5,240 per share which represents 13.79% stake in the company. The conversion period will start at December 10, 2020 and ends on November 10, 2022.

The transaction is expected to close its first tranche on December 10, 2019. The transaction has been approved by board of directors of the company. The common shares issued in the transaction are subject to a restriction period of one year.