Leaders Cosmetics Co., Ltd. (KOSDAQ:A016100) announced that it will receive KRW 21,500,000,000 on July 31, 2019. The company will issue fifth unregistered coupon unsecured private convertible bonds in the transaction. The transaction includes participation from Hanyang Securities Co.

Ltd. (KOSE:A001750) for KRW 12,000,000,000, IBK Capital Corporation for KRW 3,000,000,000, EBEST Investment & Securities Co., Ltd. (KOSDAQ:A078020) for KRW 2,000,000,000, A1 Institutional Mezzanine Hedge Fund, A1 –Type Noble Hedge Fund, A1 Mezzanine Multi Hedge Fund, A1 Smart Mezzanine Hedge Fund, A1 Plus Mezzanine Hedge Fund, A1 Mezzanine Alpha Hedge Fund, A1 Convertible Plus Hedge Fund for KRW 2,000,000,000, A1 A-Type Mezzanine Focus Hedge Fund, A1 WM Convertible Hedge Fund for KRW 1,000,000,000, A1 Mezzanine Level-Up Hedge Fund, A1 Prime Mezzanine Hedge Fund, A1 Mezzanine Grand Prix Hedge Fund, A1 Premium Mezzanine Hedge Fund, A1 Convertible Alpha Hedge Fund for KRW 1,000,000,000, and Kclavis Chungchul Eoram Mezzanine Hedge Fund 1 for KRW 500,000,000. The bonds will mature on February 2, 2024. The bonds carry zero coupon rate and yield to maturity of 2% per annum.

The bonds are convertible and unsecured. The bonds are convertible into 2,907,369 shares at conversion price of KRW 7,395 per share. The conversion period starts from August 2, 2020 and ends at January 2, 2024.

The method of issuance is domestic private convertible bond issuance. The company expects to close the transaction on August 2, 2019. The transaction was approved by the board of directors of the company.