CITECH Co., Ltd. (KOSE:A004920) announced a private placement of 8th series unregistered coupon private convertible bond for gross proceeds of KRW 10,000,000,000 and 3,100,000 common shares at a price of KRW 515 per share for gross proceeds of KRW 1,596,500,000; for aggregate proceeds of KRW 11,596,500,000 on March 31, 2020. The transaction will include participation from SM Wholesale Co., Ltd. for KRW 5,000,000,000 and KM Technology Co., Ltd. for KRW 5,000,000,000 for bonds and will issue 2,100,000 shares to returning shareholder Namsook Kim, and 1,000,000 shares to returning investor, Smart Me Co., Ltd. The bonds carry 6% interest rate and have fixed yield to maturity of 6%. The bonds will mature on April 24, 2023. The bonds will be issued at par. The bonds are 100% convertible into 14,836,794 common shares of the company representing 82.10% stake at a fixed conversion price of KRW 674 per share. The conversion period is from April 24, 2021 to March 24, 2023. The capital increase will be done through third-party allocation method. The transaction is expected to close on April 24, 2020 for bonds and May 22, 2020 for shares. The transaction has been approved by board of directors. The securities to be issued will have a hold period of one year post the closing.