Seoul Food Industrial.Co.,Ltd (KOSE:A004410) announced a private placement of round 20 bearer-free interest-free non-guaranteed private equity convertible bonds for gross proceeds of KRW 3,000,000,000 on May 11, 2021.The transaction will include participation from returning investors Hanyang Securities Co. Ltd. (KOSE:A001750) for KRW 2,000,000,000 and Mirae Asset Securities Co., Ltd. (KOSE:A006800) for KRW 1,000,000,000. The bonds issued carry a coupon rate of 0%.

The bonds have yield to maturity of 0% and would mature on May 13, 2026. The bonds are fully convertible into 7,772,020 shares of the company at a fixed conversion price of KRW 386 between a period of May 13, 2022 to April 13, 2026. The transaction has been approved by the board of directors of the company.

The transaction is expected to close on May 13, 2021. The securities issued are subjected to 1-year hold period.