Sejong Medical Co., Ltd. announced a private placement of series 4 unregistered coupon unguaranteed private convertible bond for KRW 30,000,000,000, series 5 unregistered coupon unguaranteed private convertible bond for KRW 10,000,000,000, series 6 non-guaranteed private convertible bonds with bearer type interest part for KRW 20,000,000,000, series 7 non-guaranteed private convertible bonds with bearer type interest part for KRW 20,000,000,000; for aggregate gross proceeds of KRW 50,000,000,000 on July 15, 2022. The transaction will include participation from CANARIABIO M Inc. for series 5, series 6 and series 7 bonds. The series 4, series 5, series 6 and series 7 bonds carry yield to maturity rate of 3%.

The bond will mature on September 15, 2025. The series 4 bonds will be 100% converted into 6,309,148 common shares at a fixed conversion price of KRW 4,755 per share for an equity stake of 15.51%.The series 5 bonds will be 100% converted into 2,103,049 common shares at a fixed conversion price of KRW 4,755 per share for an equity stake of 5.17%. The series 6 bonds will be 100% converted into 4,206,098 common shares at a fixed conversion price of KRW 4,755 per share for an equity stake of 10.34%.

The series 7 bonds will be 100% converted into 4,206,098 common shares at a fixed conversion price of KRW 4,755 per share for an equity stake of 10.34%. The conversion period for series 5, series 6 and series 7 bond is from September 15, 2023 to August 15, 2025. The payment date of the transaction is September 15, 2022.

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