Telcon RF Pharmaceutical Inc. (KOSDAQ:A200230) announced a private placement of series 16 unregistered coupon non-guaranteed private convertible bonds for gross proceeds of KRW 4,290,000,000, series 17 unregistered coupon non-guaranteed private convertible bonds for gross proceeds of KRW 22,000,000,000, and series 18 unregistered coupon non-guaranteed private convertible bonds for gross proceeds of KRW 14,360,000,000, for aggregate gross proceeds of KRW 40,650,000,000 on November 3, 2020. The transaction will include participation from returning investor Hanil Vacuum Co., Ltd. (KOSDAQ:A123840) for the series 16 and 17 bonds and Evercore Investment Holdings for series 18 bonds. All the bonds carry a coupon rate of 3% and yield to maturity of 5%, and will mature on November 3, 2023.

The series 16 bonds are fully convertible into 636,781 shares at a conversion price of KRW 6,737 per share which represents 0.74% stake in the company; the series 17 bonds are fully convertible into 3,265,548 shares at a conversion price of KRW 6,737 per share which represents 3.68% stake; and the series 18 bonds are fully convertible into 2,131,512 shares at a conversion price of KRW 6,737 per share which represents 2.43% stake. The conversion for all the bonds period starts from November 3, 2021 to October 3, 2023. The bonds have a hold period of one year.

The transaction has been approved by the board of the directors of the company.