Midong & Cinema Co., Ltd. (KOSDAQ:A161570) announced a private placement of 1,396,648 common shares at an issue price of KRW 3,580 for proceeds of KRW 4,999,999,840 and series 1 domestic unregistered coupon unguaranteed private convertible bonds for proceeds of KRW 2,000,000,000, for total gross proceeds of KRW 6,999,999,840 on December 18, 2018. The transaction will involve participation from new investor BGI Investment Limited for KRW 4,999,999,840, Soul Bay Korea Co., Ltd. for KRW 1,000,000,000, and SBK PEF 1 for KRW 1,000,000,000. The company has signed a contract with BGI Investment Limited for 18.98% stake. The shares will be issued at a premium and through third party allotment method. Post the closing of the transaction, the shares issued by the company will increase from 13,791,786 to 15,188,434. The shares to be issued in the transaction are subject to a hold period of one year. The bonds will carry no coupon rate and a yield to maturity of 2%. The bonds will mature on March 15, 2022. The bonds will be fully convertible into 488,400 shares at a conversion price of KRW 4,095 from March 15, 2022 to February 13, 2022. The subscription and payment date of the bonds is December 18, 2018 and March 15, 2019 respectively. The payment date of the shares is February 28, 2019. The transaction was approved by the board of directors of the company.