KidariStudio, Inc. (KOSE:A020120) announced a private placement of 575,537 common shares at an issue price of KRW 4,170 per share for gross proceeds of KRW 2,399,989,290 and series 22 Unregistered coupon unguaranteed private convertible bond for gross proceeds of KRW 5,600,000,000, for aggregate gross proceeds of KRW 7,999,989,290 on July 18, 2019. The transaction will involve participation from new investors Midasdong-a Investment Co.,Ltd. for 35,971 shares and KRW 350,000,000 bonds, Shinhan Eng & Const. Co.,Ltd (KOSE:A005450) for 143,884 shares, Union Cinema Investment Fund, a fund managed by Union Cinema Investment Fund for 107,913 shares and KRW 1,050,000,000 bonds, History Investment Co., Ltd. for KRW 1,400,000,000 bonds and returning investor, Daou Data Corp.

(KOSDAQ:A032190) for 287,769 shares and KRW 2,800,000,000 bonds. The company will increase the capital through third party assignment method. The bonds will mature on July 19, 2024.

The bonds carry a coupon rate of 0% and yield to maturity of 1%. The bonds are 100% convertible into 1,100,196 shares at a conversion price of KRW 5,090 from July 20, 2020 to June 19, 2024. The payment date of shares is July 26, 2019 and of bonds is July 19, 2019.

The transaction has been approved by the board of directors of the company. The securities issued in the transaction have a lock up period of 1 year.