Micro Digital Co., Ltd. announced a private placement to issue Series 2 Bearer Unsecured Private Placement Convertible Bonds for the gross proceeds of KRW 9,000,000,000 on March 18, 2024. The transaction will include participation from new investors NH Investment & Securities Co., Ltd. (From the fiduciary position of Fund 1) for KRW 2,000,000,000, Shinhan Bank Co., Ltd. (From the fiduciary position of Fund 2) for KRW 1,000,000,000, Shinhan Bank Co., Ltd. (From the fiduciary position of Fund 3) for KRW 1,000,000,000, Shinhan Bank Co., Ltd. (From the fiduciary position of Fund 4) for KRW 1,000,000,000, Korea Investment & Securities Co., Ltd. (From the fiduciary position of Fund 5) for KRW 500,000,000, Samsung Securities Co., Ltd. (From the fiduciary position of Fund 6) for KRW 200,000,000, Samsung Securities Co., Ltd. (From the position of trustee of Fund 7) for KRW 300,000,000, Korea Investment & Securities Co., Ltd. (From the fiduciary position of Fund 8) for KRW 500,000,000, Korea Investment & Securities Co., Ltd (From the fiduciary position of Fund 9) for KRW 200,000,000, Korea Investment & Securities Co., Ltd (From the fiduciary position of Fund 10) Ltd. for KRW 100,000,000, NH Investment & Securities Co., Ltd. (From the fiduciary position of Fund 11) for KRW 100,000,000, NH Investment & Securities Co., Ltd. (From the fiduciary position of Fund 12) for KRW 200,000,000, Mirae Asset Securities Co., Ltd. (From the fiduciary position of Fund 13) for KRW 100,000,000, Mirae Asset Securities Co., Ltd. (From the fiduciary position of Fund 14) for KRW 100,000,000, NH Investment & Securities Co., Ltd. (From the fiduciary position of Fund 15)  for KRW 200,000,000, NH Investment & Securities Co., Ltd. (In the fiduciary position of Fund 16) for KRW 100,000,000, Mirae Asset Securities Co., Ltd. (From the fiduciary position of Fund 17) for KRW 100,000,000, NH Investment & Securities Co., Ltd. (In the fiduciary position of Fund 18) for KRW 100,000,000, NH Investment & Securities Co., Ltd. (From the status of trustee of Fund 19) for KRW 500,000,000, Winvest Venture Partners Inc. for KRW 500,000,000 and individual investor SungShim Kim for KRW 200,000,000. The transaction has been approved by the shareholders of the company and is expected to close on March 20, 2024.

The bonds bear zero coupon rate and 2.5% maturity rate and matures on March 20, 2029. The bonds are 100% convertible into 1,675,977 shares at a fixed conversion price of KRW 5,370 from Match 20, 2025 to February 20, 2029. The securities are restricted to a hold period.