Kumho Electric, Inc. announced that it has completed a private placement of series 10 non-guaranteed private placement convertible bonds for gross proceeds of KRW 3,998,400,000, 1,519,756 common shares at a price of KRW 3,290 for gross proceeds of KRW 4,999,997,240; for aggregate gross proceeds of KRW 8,998,397,240 on January 20, 2022. The transaction included participation for bonds from individual investors Jong-soo Oh for KRW 1,969,800,000, Min-wook Kim for KRW 1,381,800,000, Hyeon-won Jeon for KRW 308,700,000, Jun-ho Seo for KRW 279,300,000, and Wonil Lee for KRW 58,800,000, for shares from K-Vision Investment Association No. 1. The bonds carry zero interest rate, yield to maturity rate of 3%, will mature on January 20, 2025, and are fully convertible into 1,053,319 shares of the company, representing 5.05% stake, at a fixed conversion price of KRW 3,796 per share from January 21, 2023 to December 20, 2024.

The transaction has been approved by the board of directors of the company. The securities issued in the transaction are subject to a lock up period of one year.