Captivision (CAPT) Strengthens Financial Position

Captivision Inc. (NASDAQ: CAPT) today announced strategic improvements to its balance sheet, resulting in a strengthening of its financial position.

Debt-to-Equity Conversion
The Company entered into contribution agreements (the “Contribution Agreements”) with certain creditors (the “Contributors”) of its wholly owned subsidiary, Captivision Korea Inc. (“Captivision Korea”), pursuant to which the Contributors agreed to contribute the respective outstanding balances remaining under various debt agreements with Captivision Korea (the “Contributed Debt”) to the Company in exchange for the issuance by the Company of its ordinary shares in a debt to equity conversion transaction (the “Conversion”).

Pursuant to the Conversion, an aggregate of KRW 5,791,867,301 (approximately $4.2 million as of the exchange rate calculation date) of Contributed Debt was contributed to the Company in exchange for the issuance of an aggregate of 1,414,895 shares at a conversion price per share equal to $3.00.

Issuance of Bonds
Captivision Korea entered into a Private Bonds Subscription Agreement (the “Subscription Agreement”) with certain investors (each a “Subscriber” and collectively, the “Subscribers”), pursuant to which the Subscribers agreed to subscribe to and Captivision Korea agreed to issue an aggregate amount of KRW 3,100,000,000 (approximately $2.2 million) of unregistered private placement bonds (the “Bonds”).

“We appreciate our investors’ continued support as we position Captivision for ongoing success,” said Gary Garrabrant, Chairman and CEO of Captivision. “Equitizing our outstanding debt, in coordination with the issuance of bonds and overall business development efforts, strengthens our financial position at a time when we believe the Company has a number of important business catalysts and milestones ahead.”

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