Plumbline Life Sciences, Inc. announced a private placement of series 4 bearer-type interest-bearing non-guaranteed collateralized private placement convertible bonds for a gross proceeds of KRW 60,000,000, 5,000 convertible preferred shares at a price of KRW 10,000 for gross proceeds of KRW 50,000,000; for aggregate gross proceeds of KRW 110,000,000 on January 27, 2022. The transaction will include participation for series 4 bonds from Lee, Moo-kyung for KRW 30,000,000, Lim, Gyu-yang for KRW 30,000,000; for preferred shares from Ha, Sang-soo for KRW 50,000,000. The bonds have a coupon rate of 4% and yield to maturity of 5%.

The bonds will mature on February 09, 2025. The bonds will be 100% converted into 6,000 common shares at a fixed conversion price of KRW 10,000 per share for an equity stake of 0.18%. The conversion period is from February 10, 2023 to January 09, 2025.

The company will issue preferred shares of par value of KRW 500 per share through third party allocation method. The preferred shares will be converted into 5,000 common shares from February 12, 2022 to February 10, 2027. The payment date of the transaction is February 10, 2022.

The securities issued in the transaction are subject to a lock up period of one year. The transaction has been approved by the board of directors of the company.