UMN Pharma Inc. (TSE:4585) announced a private placement of 600,000 common shares at a price of ¥298 for gross proceeds of ¥178,800,000 and 1st series convertible bonds with warrants for gross proceeds of ¥,1460,200,000 for aggregate gross proceeds of ¥1,460,200,000 on October 31, 2017. The transaction will involve participation from Shionogi & Co., Ltd. (TSE:4507), which will hold 4.69% stake in the company post the closing. The company reported issuance expenses of ¥10,620,000.

The transaction has been approved by the board of directors of the company. The transaction is expected to close on November 16, 2017.