CommSeed Corporation (NSE:3739) announced a private placement of bonds with warrants for gross proceeds of ¥101,495,800 on May 12, 2014. The company will issue 40 number two warrants at ¥37,395 per warrant and 40 series 2nd unsecured convertible bonds at ¥2,500,000 each. The bonds and warrants will be issued by third party allocation to existing investor Cykan Company Ltd. and new investor Milestone Capital Management Co., Ltd. The bonds have a face value of ¥100 per bond and will be convertible into common shares at ¥360 per share. The bonds and warrants are convertible into 277,777 shares. The company will bear total issuance expenses of ¥4,215,800 for the issue of bonds with warrants, as well as for the exercise of these warrants. Issue costs mainly include price calculation expenses for the bonds and warrants for ¥2,700,000, registration-related expenses of ¥800,000, and other expenses including share fees and external examination expenses for ¥715,800. Upon conversion of the bonds, Cykan Company Ltd will hold a 54.69% stake and Milestone Capital Management Co., Ltd. will hold a 5.48% stake. The transaction is expected to close on May 29, 2014. The transaction was approved by the managing board of the company.

On May 13, 2014, the company amended the terms of the transaction. The warrants are exercisable into 277,000 shares where one warrant corresponds to 1,000 shares. Thereby, the company will issue 277 warrants at ¥5,400 per warrant for proceeds of ¥1,495,800.

On May 29, 2014, CommSeed Corporation closed the transaction.