SEONGAN CO., Ltd. announced a private placement of zero-coupon series 2 bearer type unregistered unsecured private convertible bond for gross proceeds of KRW 25,000,000,000 on August 1, 2022. The transaction will include participation from Chae, Duk Hee. The bonds carry yield to maturity rate of 2.5% per annum, will mature on October 26, 2026, and are fully convertible into 34,770,514 common shares, representing 37.95% stake in the company, at a fixed conversion price of KRW 719 per share from October 26, 2023, to September 26, 2026.

The transaction has been approved by the board of directors of the company. All securities issued in the transaction are subject to a lock up period of one year. The transaction is expected to close on October 26, 2022.