YOUNGHWA TECH Co., Ltd. announced a private placement of 2nd series non-guaranteed private equity convertible bonds with bearer type interest part for gross proceeds of KRW 10,000,000,000 on June 15, 2022. The transaction will include participation from und -1 Anda H Mezzanine General Private Equity Trust No. 12, a fund managed by Anda Asset Management Co., Ltd from KB Securities acted as a trustee for KRW 4,000,000,000, Anda H The banks3 General Private Equity Trust, Anda H KOSDAQ Venture General Private Equity Trust No.

4, and Anda H KOSDAQ Venture General Private Equity Trust No. B, a fund managed by ANDA Asset Management Co., Ltd. from Samsung Securities Co., Ltd. acted as a trustee for for KRW 4,000,000,000, Hanyang H New Technology Business Investment Association No.3 for KRW 1,000,000,000 and Hanyang H New Technology Business Investment Association No.4 for KRW 1,000,000,000. The bond carries a surface interest rate of 0% per annum, 0% of maturity rate and would mature on June 17, 2027.

The bond can be 100% converted into 618,926 common shares for 5.47% stake of the company at a fixed exercise price of KRW 16,157 per common stock. The exercise period is from June 17, 2023 to May 17, 2027. The transaction is expected to close on June 17, 2022.

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