Satrec Initiative Co., Ltd. (KOSDAQ:A099320) announced a private placement of series 1 registered non-guaranteed private convertible bonds for gross proceeds of KRW 50,000,000,000, and 1,817,120 common shares of par value KRW 500 per share, at an issue price of KRW 32,426 per share for gross proceeds of KRW 58,921,933,120, for aggregate gross proceeds of KRW 108,921,933,120 on January 12, 2021. The transaction will include participation from new investor Hanwha Aerospace Co., Ltd. (KOSE:A012450). As a part of the transaction, the investor will acquire 20% stake in the company via subscription of common shares.

The bonds bear zero coupon rate, and zero yield to maturity rate, are being issued at par, will mature on January 15, 2024, and are fully convertible into 1,308,249 common shares, representing 17.99% stake in the company, at a fixed conversion price of KRW 38,219 per share, from January 16, 2022 to January 08, 2024. All shares to be issued in the transaction will be subject to a lock-up period of one year. The transaction has been approved by the board of directors of the company.

The payment date for the bonds and common shares is January 15, 2021 and April 30, 2021, respectively.