Naver Z Corporation announced a private placement of 8,734 preferred shares at an issue price of KRW 1,373,803 per preferred share for gross proceeds of KRW 11,998,795,402 on October 7, 2020. The preferred shares have a par value of KRW 5,000 per preferred share. The transaction will include participation from Big Hit Entertainment Co., Ltd. (KOSE:A352820) for 5,095 preferred shares, YG Investment Inc. for 2,183 preferred shares, and YG Plus, Inc. (KOSE:A037270) for 1,456 preferred shares.

The company will issue the securities on third party allocation basis. The preferred shares to be issued in the transaction are not convertible into equity. The company will issue the preferred shares at a premium of 27,376.06%.

The company expects to close the transaction on November 3, 2020. The transaction was approved by the board of directors of the company.