Kx Hitech Co.,Ltd announced a private placement of series 12 unsecured privately placed convertible bonds with bearer interest for gross proceeds of KRW 11,000,000,000, series 13 unsecured privately placed convertible bonds with bearer interest for gross proceeds of KRW 10,000,000,000; for aggregate gross proceeds of KRW 21,000,000,000 on February 21, 2023. The transaction will include participation from Kiwoom Director No. 3 New Technology Business Fund and returning investor KX Innovation Co., Ltd. The bonds carry a coupon rate of 0% and maturity rate of 2%. The bonds are fully convertible at a price of KRW 1,391 per share for 7,907,979 shares for 12.7% stake. The bonds are convertible from February 23, 2024 and ends on January 23, 2028. The bonds have a hold period of one year from from the date of issuance of bonds and will mature on February 23, 2028. The transaction has been approved by the board of directors of the company. The transaction is expected to close on February 23, 2023.

The series 13 bonds carry a coupon rate of 2% and maturity rate of 2%. The bonds are fully convertible at a price of KRW 1,391 per share for 7,189,072 shares for 11.68% stake. The bonds are convertible from February 27, 2024 and ends on January 27, 2026. The bonds have a hold period of one year from from the date of issuance of bonds and will mature on February 27, 2026. The expected payment date is February 27, 2023.