Telcon RF Pharmaceutical Inc. (KOSDAQ:A200230) announced a private placement of series 15 non-guaranteed private convertible bonds with bearer interest for gross proceeds of KRW 30,000,000,000 on September 28, 2020. The transaction will include participation from returning investor Emmaus Life Sciences, Inc. (OTCPK:EMMA). The bonds carry a coupon rate and interest rate to maturity of 2.1%, and will mature on October 16, 2030.

Interest to be paid every three months deferred to the interest payment date every three months from the day after the issue of the bond to the due date of repayment of the principal. The bonds are 100% convertible into 3,249,566 shares at a conversion price of KRW 9,232 per share which represents 3.80% stake in the company. The conversion period starts from October 16, 2021 and end on September 16, 2030.

The bonds have a hold period of one year. The transaction is expected to close on October 16, 2020. The transaction has been approved by the board of the directors.