Entermate Co., Ltd. (KOSDAQ:A206400) announced a private placement of 2nd series unregistered and unsecured private convertible bonds for proceeds of KRW 5,000,000,000 and 3,086,419 common shares at an issue price of KRW 1,620 for gross proceeds of KRW 4,999,998,780, for total gross proceeds of KRW 9,999,998,780 on January 12, 2018. The transaction will involve participation from Herb Invest Co., Ltd for bonds and returning investor Wooriro Co., Ltd (KOSDAQ:A046970) for shares. Post the closing Wooriro Co., Ltd (KOSDAQ:A046970) will hold 3,866,776 shares for a stake of 9.4% in the company.

The bonds will be convertible into 2,747,252 shares of the company at a fixed conversion price of KRW 1,820 per share from January 26, 2019 to December 26, 2020 The bonds will carry no coupon rate and will have a yield to maturity rate of 3%. The bonds will mature on January 26, 2021. The expected payment date and subscription date of the transaction is January 26, 2018.

The transaction was approved by the board of directors of the company. The shares are being issued through third party allotment for a lock up period of one year.