Dongwoon Anatech Co., Ltd. (KOSDAQ:A094170) announced that it will issue 872,599 registered convertible preferred stock for KRW 5,730 per share for gross proceeds of KRW 4,999,992,270 and unregistered coupon unguaranteed private convertible bond for gross proceeds of KRW 7,000,000,000, totaling gross proceeds of KRW 11,999,992,270 on August 16, 2018. The preferred shares bears dividend of 2% per annum with cumulative and participating feature. The company issued securities through 3rd party allotment method.

The transaction is expected to close on August 24, 2018. The preferred shares are convertible in common stock from August 25, 2019 to July 25, 2023. The securities issued have a lockup period of one year.

The transaction will include participation from Rhinos Global Mezzanine Multi-Strategy Hedge Fund 1, backed by Shinhan Investment Corp., for 139,616 preferred shares, Rhinos Protect Hedge Fund 1, for 26,178 preferred shares, Rhinos Global Safe Hedge Fund 1, for 54,101 preferred shares, Rhinos Plain Vanilla Hedge Fund 1, for 41,884 shares, all backed by NH Investment & Securities Co., Ltd. (KOSE:A005940), Platform Partners Smart Venture Hedge Fund 1, and Platform Partners Smart Mezzanine 4.0 Hedge Fund 5 for 87,260 preferred shares each, both backed by Mirae Asset Daewoo Co., Ltd. (KOSE:A006800), Platform Partners Smart Venture 80 Hedge Fund 1 backed by KB Securities Co., Ltd., Investment Arm for 87,260 preferred shares, Mirae Asset KOSDAQ Venture Capital Securities Investment Trust 1 [Stock] backed by Mirae Asset Global Investments Co., Ltd for 261,780 shares and Asset One Asset Management Co., Ltd., backed by Korea Securities Finance Corporation for 87,260 preferred shares, Rhinos KOSDAQ Venture Mezzanine Hedge Fund 1, Rhinos K Bio Mezzanine Hedge Fund, Rhinos Plain Vanilla Hedge Fund 2, backed by NH Investment & Securities Co., Ltd. (KOSE:A005940) for proceeds of KRW 2,000,000, Rhinos KOSDAQ Venture Public Stock Hedge Fund 1, Platform Partners Smart Venture Hedge Fund 1, Platform Partners Smart Mezzanine 4.0 Hedge Fund 4, Platform Partners Smart Mezzanine 4.0 Hedge Fund 5 backed by Mirae Asset Daewoo Co., Ltd. (KOSE:A006800) for proceeds of KRW 2,500,000,000, Moorim Capital Co., Ltd., Investment Arm for proceeds of KRW 2,000,000,000 and Platform Partners Smart Venture 80 Hedge Fund 1 backed by KB Securities Co., Ltd., Investment Arm for proceeds of KRW 500,000,000. The bonds are convertible into 1,092,896 shares representing 8.76% stake at a price of KRW 6,405 per share between August 24, 2019 and July 24, 2023. The transaction has a subscription date of August 20, 2018 and a payment date of August 24, 2018.

Securities issued are subject to 1 year hold period with respect to exercise and split.