CHA Biotech Co., Ltd. (KOSDAQ:A085660) announced a private placement of convertible bonds for gross proceeds of KRW 44,000,000,000 on April 19, 2016. The company will issue fourth unregistered/unsecured private convertible bonds for KRW 24,000,000,000 and fifth unregistered unsecured unguaranteed private convertible bonds for KRW 20,000,000,000. The bonds will be issued at par.

The bonds will mature on April 21, 2021. The series four bonds will include participation from Kyunghee Industry Co. Ltd. for KRW 8,100,000,000, Kwangryul Cha for KRW 5,500,000,000, Wontae Cha for KRW 5,500,000,000, Wonhee Cha for KRW 1,650,000,000, and other investors.

The zero coupon bonds have yield to maturity of 2% per annum. The bonds are redeemable in lump sum on its maturity. The bonds are 100% convertible into shares at a fixed conversion price of KRW 14,345 per share.

Fourth bonds are convertible from April 21, 2017 to April 20, 2020 and fifth bonds are convertible from April 21, 2017 to April 20, 2021.