Dongbu Corporation announced a private placement to issue Series 3 unsecured privately placed convertible bonds for a gross proceeds KRW 12,500,000,000 and series 4 unsecured privately placed convertible bonds for a gross proceeds KRW 12,500,000,000 for aggregate the gross proceeds of KRW 25,000,000,000 on June 15, 2023. The transaction included participation from new investor Curious Centerville Co., Ltd. for KRW 25,000,000,000. The series 3 bonds and series 4 bonds are 100% convertible into 1,624,009 shares at a fixed conversion price of KRW 7,697 and will mature on June 22, 2026.

The bonds bear 6% coupon rate and 9% yield to maturity. The transaction has been approved by the shareholders of the company and has a restricted to a hold period of one year. The transaction is expected to close on June 22, 2023.