Yongnam Holdings Limited (SGX:AXB) announced that has entered into placement agreement to issue redeemable convertible bonds for gross proceeds of SGD 15,000,000 on May 22, 2019. The transaction will include participation from institutional investors, high net worth individuals, family offices, corporate, accredited investors, and also director or substantial shareholder upon approved by the SGX Stock Exchange or specific shareholders. The bond will issue at par value. The bond is unsecured, unsubordinated, and unconditional. The maturity date of the bond will be 2 years from its issuance. The bonds will be fully converted into maximum of 83,798,883 common shares, representing approximately 13.8% of the issued and paid-up share capital of the company. The conversion of bond into share shall be subject to a minimum block of SGD 250,000. The bonds will convertible at any time on and after the date falling three months after the date of issuance of the bonds up to the date immediately preceding the maturity date, at a price of 107% of the simple average of the daily volume weighted average price per share for trades done for each of the five market days on the SGX Stock Exchange, immediately prior to the date of the agreement. The bonds will have an interest rate of 7% per annum, payable every six months. The company will pay SGD 500,000 as an estimated fees and expenses in the transaction, amounting to net proceeds of SGD 14,500,000. The bonds which are not redeemed, converted or purchased and cancelled by the company will be redeemed by the company at 100% of their principal amount on the maturity date.