K-STECMCELL CO.,Ltd. announced a private placement of its third round unregistered unguaranteed private convertible bonds and 1,500,000 shares at KRW 1,000 per share for gross proceeds of KRW 14,500,000,000 on July 20, 2015. The transaction will include participation for bonds from existing investors, Leem Heung-Soon for KRW 5,000,000,000, Jung-Geun Joo for KRW 500,000,000, Heum-Noh Joo for KRW 1,000,000,000, Pan-Ho Kim for KRW 250,000,000, Geum-Ran Lee for KRW 250,000,000, Young-Ho Ahn for KRW 200,000,000, Jae-Sik Yim for KRW 100,000,000, Chang-Ryeol Yoo for KRW 500,000,000, Nature Cell Co.,Ltd. for KRW 5,000,000,000, and Eun-Sook Jo for KRW 200,000,000. The transaction will include participation from new investors including, Jong-Chool Lee, Soon-Mi Kwon for KRW 200,000 shares each, Dae-Hong Jung, Seung-il Yoo, Mi-Kyung Jung, Yong-Gyu Han for 100,000 shares each, Pan-Ho Kim for 160,000 shares, and other new investors.

The bonds will be issued at par. The bonds will bear interest at the fixed rate of 4% per annum and yield to maturity of 7% per annum. The bonds will mature on July 21, 2018.

The bonds are 100% convertible into common shares of the company at a fixed conversion price of KRW 1,200 per share from July 22, 2016 to June 21, 2018. The shares have a face value of KRW 500 each and will be issued at a premium. The shares will be issued through third party allotment.

The subscription date for bonds is July 20, 2015 and the payment date is July 22, 2015. The payment date for shares is August 4, 2015. The shares will be subject to a lock up period of one year from the date of issue.

The transaction has been approved by the board of directors of the company.