Oscotec Inc. (KOSDAQ:A039200) announced a private placement of 457,664 registered convertible preferred stock at a price KRW 21,850 per share for gross proceeds of KRW 9,999,958,400 and 11th series unregistered coupon unguaranteed domestic private convertible bond for gross proceeds of KRW 10,000,000,000 for aggregate proceeds of KRW 19,999,958,400 on September 4, 2018. The transaction will include participation from existing investor E& Healthcare Fund 3, a fund managed by E&INVESTMENT INC. for 274,599 shares and KRW 6,000,000,000 of bonds, Samsung Securities Co. Ltd., Investment Arm for 29,748 shares and KRW 650,000,000 of bonds, Shinhan Investment Corp., Investment Arm for 27,460 shares and KRW 600,000,000 of bonds, returning investor AJU Good Venture Fund, a fund managed by AJU IB INVESTMENT Co., Ltd. for 57,208 shares and KRW 1,250,000,000 of bonds, Mirae Asset New Growth Good Company Secondary Fund 18-1, Mirae Asset New Growth Good Company Fund 17-1, and Mirae Asset High Tech Frontier Fund for 22,883 shares and KRW 500,000,000 of bonds each respectively.

The company will issue preferred stock through third party allotment and 11th series bonds through domestic private convertible bond issuance method. The 11th series bonds will be issued at par and will mature on September 11, 2021. The 11th series bonds will carry no coupon and yield to maturity of 2% per annum.

The 11th series bonds will be 100% convertible into 372,439 common shares for 1.36% stake in the company at a fixed conversion price of KRW 26,850 per share from September 11, 2019 to August 11, 2021. The conversion of preferred stock will start on September 11, 2019 and end on August 11, 2021. The transaction is expected to close on September 11, 2018.

The preferred stock issued in the transaction is subject to a hold period of one year. The transaction has been approved by the board of directors of the company.