SI Resources Co., Ltd. announced that it expects to receive KRW 5.99999938 billion in funding
January 29, 2019
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SI Resources Co., Ltd. (KOSDAQ:A065420) announced a private placement of round 5 unregistered coupon unguaranteed private convertible bond for proceeds of KRW 3,000,000,000; 3,442,340 shares at a price of KRW 581 per share for proceeds of KRW 1,999,999,540; and 1,700,680 common shares at a price of KRW 588 for gross proceeds of KRW 999,999,840 for total gross proceeds of KRW 5,999,999,380 on January 30, 2019. The transaction will include participation from new investors, Blitix Co., Ltd. for bonds and SIR Holdings Co., Ltd. for shares having issue price of KRW 581 and KRW 588. The bonds carry no coupon and yield to maturity is 4%. The maturity date of bonds is February 7, 2022. The bonds are 100% convertible into 5,208,333 shares of the company at a conversion price of KRW 576, representing 9.8% stake in the company from February 7, 2020 to January 6, 2022. The shares will be issued at premium having a face value of KRW 100. The shares will be issued through third party allotment method. The shares having an issue price of KRW 581 will be subject to a lock up period of one year. The payment date for bonds is February 7, 2019; for shares having an issue price of KRW 581 is February 14, 2019; and for common shares having an issue price of KRW 588 is February 7, 2019. The transaction has been approved by the board of directors of the company.
SI RESOURCES CO., LTD. is a Korea-based company mainly engaged in the soft coal business. The Company operates in two business segments: soft coal segment and fabric segment. Its soft coal segment engages in the development, manufacture and marketing of soft coals, which are used for thermal power generation. Its fabric segment engages in the manufacture of jacquard fabrics, which are used for jackets, blouses, skirts, underwear and other apparels. The Company distributes its products within domestic market and to overseas markets, including Turkey, Europe, the Middle East, Central and South America, North America and others.