KMH Hitech Co., Ltd. (KOSDAQ:A052900) announced private placement of series 10 non-guaranteed private equity convertible bonds for gross proceeds of KRW 3,500,000,000 on March 24, 2020. The transaction included participation from existing investor KMH Co. Ltd. (KOSDAQ:A122450) for KRW 2,500,000,000, and individual investors Jongha Kim and Yeon-ok Lim for KRW 500,000,000 each.

The company issued bonds at par. The bonds carry coupon of 1% and yield to maturity of 2% per annum. The bonds will mature on June 30, 2023.

The company will redeem bonds at 106.1208% of principal amount on maturity. The bonds are fully convertible into 5,420,054 common shares representing 10.36% stake at a fixed conversion price of KRW 738 per share, starting from June 30, 2021 and ending on May 30, 2023. The transaction has been approved by the board of directors of the company.

The payment date is June 30, 2020.