Se Gyung Hi Tech Co.,Ltd (KOSDAQ:A148150) announced a private placement of series 3 no bearer rights private equity securities debenture for gross proceeds of KRW 10,000,000,000 and series 2 unregistered coupon unguaranteed private convertible bonds for gross proceeds of KRW 20,000,000,000 for an aggregate gross proceeds KRW 30,000,000,000 on February 19, 2020. The transaction will include participation from new investors KB Securities Co.,Ltd for KRW 1,000,000,000, NH Investment & Securities Co., Ltd. (KOSE:A005940) for KRW 2,000,000,000, Hana Bank (China) Co., Ltd. for KRW 5,000,000,000, Eugene Investment & Securities Co.,Ltd. (KOSE:A001200) for KRW 1,000,000,000 and from Kiwoom Securities Co., Ltd. (KOSE:A039490) for KRW 1,000,000,000 for the series 3 No bearer rights private equity securities debentures and for series 2 no bearer rights private convertible bonds Infiniti Investment Advisory Co., Ltd. for KRW 2,000,000,000, Mirae Asset Daewoo Co., Ltd. (KOSE:A006800) for KRW 3,000,000,000, Ace New Technology Fund No. 5 for KRW 2,000,000,000, Andata Target Professional Investment Private Equity Fund No.

1 for KRW 1,000,000,000, W Kosdaq Venture (M) Specialized Private Equity Private Investment No. 2 for KRW 2,000,000,000, Susung Kosdaq Venture P4 Specialized Private Equity Private Investment Trust for KRW 1,000,000,000, Aqueous Asset Management Co., Ltd. for KRW 2,000,000,000, NH Absolute Triton Specialized Private Equity Private Investment Trust No. 1 for KRW 2,000,000,000, Shinhan Investment Corp., Investment Arm for KRW 2,000,000,000, Hanyang-Openm New Technology Business Fund No.

1 for KRW 2,000,000,000 and Kiwoom-Shinhan Innovation Investment No. 1 for KRW 1,000,000,000. The series 3 bonds and series 2 bonds have a coupon rate of 0% and will mature on February 21, 2025.

The series 3 bonds are 100% convertible into 251,768 shares at a price of KRW 39,719 from February 21, 2021 to January 21, 2025 and series 2 bonds are 100% convertible into 503,537 shares at a price of KRW 39,719 from February 21, 2021 to January 21, 2025. The series 2 bonds can be repaid early from February 21, 2022 to November 21, 2024 at 100% of the electronic registration fees. The transaction is expected to close on February 21, 2020.

The transaction has been approved by the board of directors.