ITEK, Inc. announced a private placement of series 4 unregistered unguaranteed unsecured private convertible bonds for gross proceeds of KRW 40,000,000,000 and 1,360,544 common shares at an issue price of KRW 7,350 for a gross proceeds of KRW 9,999,998,400 on January 17, 2023. The transaction will include participation from Geyser Ventures Co., Ltd., Jeju Venture Capital Co., Ltd., TI Partners Co., Ltd. and OTO Golf & Resort Co., Ltd. and Kangyong Choi for common shares. The series 4 bonds will have coupon rate of 1% and yield to maturity rate of 4% maturing on April 6, 2026.

The bonds will be fully convertible into 4,564,646 common shares at an issue conversion price of KRW 8,763 per shares between the period starting from April 6, 2024 and ending on March 6, 2026. The bonds have a lock-up period of one year from the date of issuance. The transaction issued shares through third party allocation method.

The transaction has been approved by board of directors of the company. The expected date of payment is April 6, 2023. The expected payment date for common stock is March 16, 2023.

The securities to be issued in the transaction will be subject to a 1 year hold period from date of issuance.