NEONTECH Co., Ltd. announced that it will issue 385,109 registered convertible preference shares at a price of KRW 3,895 per share for gross proceeds of KRW 1,499,999,555 on March 23, 2022. The company will now issue round 5 non-guaranteed private equity convertible bonds for KRW 1,500,000,000. The coupon rate of this bond is 0%, and no separate interest is paid before maturity.

The bonds will mature on March 31, 2025. The bonds are 100% convertible into 380,228 at a conversion price of KRW 3,945 representing 0.93% of the total number of shares from March 31, 2023 to February 28, 2025. The payment date is March 31, 2022.

The bonds will be subject to one year hold period. The transaction will include participation from NH-Azuiv New Growth Fund for KRW 2,999,999,555 including bonds and convertible preferred shares. The preferred shares can be converted into 385,109 common shares.

The preferred shares are convertible into common shares at a price same as the issue price at a conversion ratio of 1:1. The conversion period is from March 31, 2023 to March 30, 2027. The transaction has been approved by the board of directors of the company. The subscription date and the payment date are March 31, 2022.

The shares have a hold period of one year.