Aprogen KIC Inc. (KOSE:A007460) announced a private placement of series 17 unregistered unguaranteed private convertible bonds for gross proceeds of KRW 70,000,000,000 on September 13, 2018. The bonds will be issued at its par value. The transaction will include participation from existing investor, Locojoy International Corporation (KOSDAQ:A109960) also known as Aprogen Healthcare & Games Inc. The bonds will not carry any interest coupon and will carry a yield to maturity of 2%.

The bonds will mature on September 14, 2023. The bonds are fully convertible into 6,635,071 shares of the company at a conversion price of KRW 10,550 per share. The shares will represent 13.3% stake in the company.

The conversion period of the bonds will be from September 14, 2019 to August 14, 2023. The payment date for the bonds is expected on September 14, 2018. The transaction was approved by the board of directors of the company.