Hanchang Corporation (KOSE:A005110) announced a private placement of 62 series unguaranteed private convertible bond for gross proceeds of KRW 1,500,000,000 and 63 series unguaranteed private convertible bond for gross proceeds of KRW 3,500,000,000, and aggregate gross proceeds of KRW 5,000,000,000 on December 23, 2020. The transaction will include participation from Magna-Axis Tourism Venture Fund, a fund co-managed by MAGNA Investment Co., Ltd. and Axis Investment Co., Ltd. for KRW 300,000,000 of 62 series bonds and KRW 700,000,000 of 63 series bonds, Magna Asia Culture City Fund, a fund managed by MAGNA Investment Co., Ltd KRW 300,000,000 of 62 series bonds and KRW 700,000,000 of 63 series bonds, DongKook Pharmaceutical Co., Ltd. for KRW 300,000,000 of 62 series bonds and KRW 700,000,000 of 63 series bonds, and Jinhaksa Corporation for KRW 600,000,000 of 62 series bonds and KRW 1,400,000,000 of 63 series bonds. The series 62 bonds will carry a coupon rate of 3% per annum and yield to maturity of 5% per annum and the series 63 bonds will carry a coupon rate of 0% per annum and yield to maturity of 5% per annum.

The bonds are redeemable in nature. The series 62 bonds are fully convertible into 1,039,501 common shares at a fixed conversion price of KRW 1,443 per share in the company and the series 63 the bonds are fully convertible into 63,805 common shares at a fixed conversion price of KRW 54,854 per share in the company. The bonds will have a maturity date of December 28, 2023.

The conversion period will start from January 28,2021 and will end on November 28, 2023. The bonds will have the subscription date and payment date of December 28, 2020. The transaction has been approved by the board of directors of the company.