CHOROKBAEM COMPANY Co., Ltd. announced a private placement of 6,281,408 convertible preferred shares at an issue price of KRW 796 per share for gross proceeds of KRW 5,000,000,768 on June 16, 2022. The transaction will include participation from SKY E&M Co., Ltd. The shares will be issued at premium and through third party allotment method. The shares will be issued at zero coupon rate.

Post the closing, the number of shares will increase from 6,901,314 to 13,182,722. The shares are 100% convertible into 6,281,408 shares at an conversion price of KRW 796. The shares will start conversion from July 11, 2023 and will end on June 11, 2027.

The transaction is expected to close on July 26, 2022. The transaction was approved by the board of directors of the company. The securities to be issued will have a hold period of one year.

The company will receive funding through 3rd party allocation.