Kukdong Corp. (KOSE:A005320) announced a private placement of seventh unregistered coupon unguaranteed unsecured private convertible bonds for gross proceeds of KRW 20,000,000,000 on June 27, 2016. The bonds will issue at par. The bonds will mature on June 29, 2022. The bonds have yield to maturity of 2% and do not carry any annual coupon; with lump-sum redemption of principal on maturity date. The bonds can be fully converted into common shares of the company at a fixed conversion price of KRW 10,550 per share and a conversion period from June 29, 2017 to May 29, 2022. The subscription date is as of today. The payment date is June 29, 2016.

Now Turnaround Growth Ladder Fund No. 1 Recoverty PEF will subscribe bonds for KRW 7,500,000,000. HB Promising Service Industry Investment Fund will subscribe bonds for KRW 3,000,000,000. Returning investor Moorim Capital Co., Ltd. and Artemis Advisory Co., Ltd. each will subscribe bonds for KRW 1,500,000,000. The round will include participation from other investors. The board of directors of the company approved the transaction.