Hanchang Biotech Co., Ltd. announced a private placement of round 21 non-guaranteed private equity convertible bonds for gross proceeds of KRW 15,000,000,000 from Exergy 21 Co., Ltd. and 6,459,948 common shares at a price of KRW 1,935 for gross proceeds of KRW 12,499,999,380 from Jeonheung CNC Co., Ltd. for total proceeds of KRW 27,499,999,380 on August 4, 2022. The company will issue bonds at par. The bonds will carry 0% coupon rate, 4% yield to maturity rate, will mature on September 30, 2025 and will be 100% convertible into 6,385,696 common shares of the company at a fixed conversion price of KRW 2,349 per share from September 30, 2023 to August 31, 2025.

The expected date of payment is September 30, 2022. The shares are issued at a discount of 10%. The company is issuing shares through third-party allocation.

The date of subscription and expected date of payment is October 2, 2024. The transaction is approved by the board of directors of the company. The company has announced the payment date of September 15, 2022.