Modalis Therapeutics Corporation announced a private placement to issue 78,248 units 12 stock acquisition rights ¥68 per rights for the gross proceeds of ¥5,320,864 and 1st series of unsecured convertible bonds with stock acquisition rights for the gross proceeds of ¥500,000,000; aggregate gross proceeds of ¥505,320,864 on November 7, 2023. The transaction will include participation from new investor Evo Fund, a fund managed by Evolution Capital Management LLC. The transaction has been approved by the shareholders of the company and is expected to close on November 30, 2023.

The bonds bear zero coupon rate and matures on December 1, 2025. The bonds are convertible into initial conversion price of ¥136 per share. The rights can be exercised from December 1, 2023 to December 1, 2025 and minimum exercise price is ¥68.