Yuyu Pharma, Inc. announced a private placement of series 31 unsecured privately placed convertible bonds with bearer interest for gross proceeds of KRW 24,500,000,000 on May 18, 2023. The transaction will include participation from returning investors Eugene Investment & Securities Co.,Ltd. for KRW 1,000,000,000, Samsung Securities Co., Ltd. for KRW 5,000,000,000, Korea Investment & Securities Co., Ltd. for KRW 3,500,000,000, Mirae Asset Securities Co. Ltd. for KRW 1,400,000,000, NH Investment & Securities Co., Ltd. for KRW 1,300,000,000, KB Securities Co., Ltd. for KRW 8,300,000,000 and new investors Shinhan Investment & Securities Co., Ltd. for KRW 2,000,000,000, Ace Susung New Technology Fund No.

17 for KRW 1000,000,000 and Ace Welcome New Technology Fund No. 2 for KRW 1000,000,000. The bonds will be issued at par.

The bonds carry a coupon rate and yield to maturity rate of 0% and will mature on May 22, 2028. The bonds are fully convertible into 3,983,739 common shares of the company representing 18.78% stake at a fixed conversion price of KRW 6,150 per share from May 22, 2024 to April 22, 2028. The subscription and payment date is May 22, 2023.

The bonds will be subject to a one year hold period. The transaction has been approved by the board of directors of the company.