U-Tech Co., Ltd. (KOSDAQ:A178780) announced a private placement of 7,168,458 common shares at a price of KRW 2,790 per share for gross proceeds of KRW 19,999,997,820 and 10th series unregistered coupon unguaranteed private convertible bonds for gross proceeds of KRW 20,000,000,000, for aggregate proceeds of 39,999,997,820 on November 21, 2018. The transaction will involve participation from returning investor BP Investment Korea Co., Ltd. The shares will have a face value of KRW 500 and will be issued at a premium. Post the transaction, the total number of issued common shares of the company will increase from 17,105,229 to 24,273,687 shares. The shares will be subject to a lock up period of 1 year from the date of issue. The bonds carry coupon rate of 3% and yield to maturity of 5%. The bonds will mature on December 20, 2021. The bonds are 100% convertible at fixed conversion price of KRW 3,174 per share into 6,301,197 shares. The conversion period will start on December 20, 2019 and will end on November 20, 2021. The subscription date is November 21, 2018 for the bonds. The payment date for the shares and bonds is November 29, 2018 and December 20, 2018 respectively. The transaction will take place by way of third party allotment. The transaction has been approved by the board of directors of the company.