Hwail Pharmaceutical Co.,Ltd. announced a private placement to issue 9,620,522 common shares at an issue price of KRW 1,871 for the gross proceeds of KRW 17,999,996,662 and series 1 non-guaranteed private placement convertible bonds for the gross proceeds of KRW 8,000,000,000; for aggregate total gross proceeds of KRW 25,999,996,662 on October 12, 2023. The transaction has been approved by the shareholders of the company and is expected to close on October 20, 2023. The transaction will include participation from returning investors CrystalGenomics Invites Co., LTD. for 4,275,788 shares, Kumho HT, Inc for 2,672,367 shares and Osung Advanced Materials Co., Ltd. for 2,672,367 shares.

The series 1 bonds bear coupon rate and maturity rate of 2% and will mature on October 20, 2026. The bonds are fully convertible into 3,838,771 common shares at a conversion value of KRW 2,084 per share from October 20, 2024 to September 20, 2026. The securities are restricted to a hold period of one year.