Ehwa Defense Technology announced a private placement of series 3 non-guaranteed private equity convertible bonds with bearer type interest part for a gross proceeds of KRW 30,000,000,000 and 809,716 common shares at the price of KRW 1,235 per share for gross proceeds of KRW 999,999,260 for total proceeds of KRW 30,999,999,260 on July 19, 2021. The transaction will include participation from new investor Sonjung E&C Co. Ltd. The common shares transaction includes participation from Kyu-sik Jo which will acquire 404,858 shares and Byung-nam Min which will acquire 404,858 shares through third party allocation. The bonds have yield to maturity of 2%. The bonds will mature on July 23, 2024. The bonds will be 100% converted into 16,438,356 common shares at a fixed conversion price of KRW 1,825 per share for an equity stake of 22.50%. The conversion period is from August 23, 2022 to July 23, 2024. The payment date of the transaction is August 23, 2021. The securities issued in the transaction are subject to a lock up period of one year. The transaction has been approved by the board of directors of the company.