Toyo Knife Co., Ltd. (TSE:5964) announced that it has entered into a contract for a private placement of 577,300 common shares at ¥693 per share for proceeds of ¥400,068,900, series 1 unsecured convertible corporate bonds for proceeds of ¥200,000,000 for aggregate gross proceeds of ¥600,068,900 on March 14, 2016. Out of total funding from shares, ¥200,034,450 will be added to the paid in capital. The transaction will include sole participation from new investor, Chiiki Chukaku Kigyo Kasseika Fund, a fund managed by REVIC Partners.

The company will also issue two units of warrants to the investor. The bonds bear interest at a fixed rate of 5% per annum and are convertible into common shares of the company at a fixed conversion price of ¥693 per share. The company will pay issuance expenses of ¥39,000,000 and will receive net proceeds of ¥561,068,900.

The investor will hold 36.6% stake in the company upon issuance of shares and 46.41% stake in the company upon exercise of warrants. The payment date of the transaction is March 31, 2016.