SEONGAN CO., Ltd. announced a private placement of zero coupon series 1 bearer type unsecured private placement convertible bonds for gross proceeds of KRW 20,000,000,000, zero coupon series 1 bearer type unsecured private placement non-detachable bonds for gross proceeds of KRW 30,000,000,000 and 11,419,249 common shares at an issue price of KRW 613 per share for gross proceeds of KRW 7,000,000,000; for aggregate total gross proceeds of KRW 57,000,000,000 on August 1, 2022. The transaction will include participation from Lee, Sang-hee for KRW 27,000,000,000 for convertible bonds and common shares, Choi, Mi Sun for KRW 30,000,0000,000 non-detachable bonds. The convertible bonds will mature on October 19, 2026, and non-detachable bonds will mature on November 2, 2026.The convertible bonds will be 100% convertible into 27,816,411 common shares at a fixed conversion price of KRW 719 per share for an equity stake of 32.85%.

The conversion period is from October 19, 2023, to September 19, 2026. The payment date of the convertible-notes is October 19, 2022. The non-detachable bonds will be 100% convertible into 41,724,617 at a fixed conversion price of KRW 719 per share for an equity stake of 42.32% The conversion period is from November 2, 2024, to October 2, 2027.

The payment date of the non-detachable bonds is November 2, 2023. All 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.

The company will issue common shares through 3rd party allotment method in the transaction.