SEWONCELLONTECH Co., Ltd. (KOSE:A091090) announced a private placement of series 4 non-guaranteed private convertible bonds for a gross proceeds of KRW 68,000,000,000 on May 17, 2021. The transaction will include participation from Meritz Capital Co., Ltd. for KRW 10,000,000,000, Meritz Fire & Marine Insurance Co., Ltd. (KOSE:A000060) for KRW 10,000,000,000, Meritz Securities Co., Ltd. (KOSE:A008560) for KRW 45,000,000,000, Sunny Electronics Corp. (KOSE:A004770) for KRW 3,000,000,000.

The bonds have a coupon rate of 3% and yield to maturity of 6%. The bonds will mature on May 18, 2024. The bonds will be 100% converted into 37,967,615 common shares at a fixed conversion price of KRW 1,791 per share for an equity stake of 53.56%.

The conversion period is from May 19, 2022 to May 14, 2024. The subscription date is May 17, 2021 and payment date of the transaction is May 18, 2021. 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.