Hong Jin Co.,Ltd. announced that it will issue round 1 bearer interest unsecured private placement convertible bonds for KRW 3,000,000,000 on December 19, 2023. The transaction include the participation from new investors DB Financial Investment Co., Ltd for KRW 1,000,000,000 and Ace Jiangsu New Technology Investment Fund No.3 for KRW 2,000,000,000. The bonds carry coupon rate of 0% and have yield to maturity of 5%.

The bonds will mature on December 22, 2026. The bonds will be 100% converted into 681,817 common shares representing 13.63% of the company at a fixed conversion price of KRW 4,400 per share. The conversion period is from December 22, 2024 to November 23, 2026.

The transaction has been approved by the board of directors of the company. The payment date of the transaction is December 22, 2023.