Virtualtek Corp (KOSDAQ:A036620) announced a private placement of 5th series unregistered coupon unguaranteed private convertible bonds for gross proceeds of KRW 10,000,000,000 on March 4, 2019. The transaction will include participation from SM Culture Co., Ltd. For KRW 1,000,000,000, Widwin Film Co., Ltd. for KRW 1,000,000,000, Widwin Holdings Co., Ltd. for KRW 2,000,000,000, Hosun Kim for KRW 5,000,000,000, and W Bit Fund for KRW 1,000,000,000. The bonds were issued at par. The convertible bonds carry fixed 2% yield to maturity and fixed 2% annual coupon rate, lump-sum redemption of principal on maturity date for the bonds. The convertible bonds will be converted into 13,698,628 shares at fixed conversion price of KRW 730 per share for 34.72% stake in the company. The conversion period is from May 3, 2020 to April 3, 2022. The convertible bonds will mature on May 3, 2022. The subscription date is March 4, 2019 and payment date will be May 3, 2019. The transaction was approved by the board of directors of the company.