Daeryun E&S Co., Ltd. announced that it will issue 204,000 shares at KRW 500,000 per share for proceeds of KRW 102,000,000,000 and 1,170,905 redeemable convertible preferred shares at KRW 64,000 per share for proceeds of KRW 74,937,920,000; for aggregate gross proceeds of KRW 176,937,920,000 on July 25, 2018. The preferred shares will be issued with voting rights and will mature five years after the issue date. The preferred shares will be convertible into ordinary shares. The company will issue securities through third party allotment. The transaction will involve participation from returning investor Hanjin Heavy Industries & Construction Holdings Co., Ltd. (KOSE:A003480) for 204,000 shares for proceeds of KRW 102,000,000,000, and new investors, EUGENE Group, for 70,312 preferred shares for proceeds of KRW 4,499,968,000, JT Savings Bank Co., Ltd., for 78,125 preferred shares for proceeds of KRW 5,000,000,000, DR Pipe No. 1 Co. Ltd., for 703,125 preferred shares for proceeds of KRW 45,000,000,000 , and NongHyup Bank, Investment Arm for 319,343 preferred shares for proceeds of KRW 20,437,952,000. Post the closing Hanjin Heavy Industries & Construction Holdings Co., Ltd. (KOSE:A003480) will hold KRW 176,108,000,000 investment in the company. The number of new shares allocated per one existing share is 0.0229688. The first tranche of the transaction will close on July 26, 2018. The second and final tranche is expected to close on July 27, 2018. The transaction has been approved by the board of directors of the company. The company reported total assets of KRW 625,549,804,222, total liabilities of KRW 411,060,628,211, capital of KRW 44,408,000,000, revenue of KRW 605,612,599,822, and net profit of KRW -7,779,152,315 for the year ended December 31, 2017.