Raising Funds for Growth Investment Through a Listing and Disposal of Treasury Shares

「Funds provided by financing activities amounted to ¥49,082 million, up 225.8% year on year. The main factors were ¥23,418 million raised through a public offering and ¥34,304 million in proceeds from long-term borrowings, partly offset by ¥8,411 million in payments for the repayment of long-term borrowings and redemption of bonds, among other items.」

「The company's capital increased by ¥10,401 million and its capital reserve increased by ¥10,401 million through a public offering with a payment date of 7 October 2019. In addition, its capital and capital reserve each increased by ¥1,308 million upon receipt, on 6 November 2019, of payment for a third-party allotment from Nomura Securities Co., Ltd.」

「Of the funds raised in this offering, with a maximum subscription amount of ¥24,287 million, the company plans to lend ¥13,000 million to TKP SPV-9 by the end of November 2019 and use the balance to repay short-term borrowings by the end of December 2019.」

「The main factors behind the increase were a ¥2,060 million increase in capital surplus from the disposal of treasury shares at the time of the stock listing in March 2017, and a ¥2,071 million increase in retained earnings.」

「The company disposed of treasury shares in a public offering of common shares with a payment date of 26 March 2017 and in a third-party allotment of common shares with a payment date of 25 April 2017. As a gain on the disposal of treasury shares of ¥2,060 million was generated, capital surplus increased by the same amount and treasury shares decreased by ¥93 million during the cumulative third-quarter consolidated period.」

「The company disposed of treasury shares in a public offering of common shares with a payment date of 26 March 2017 and in a third-party allotment of common shares with a payment date of 25 April 2017. As a gain on the disposal of treasury shares of ¥2,060 million was generated, capital surplus increased by the same amount and treasury shares decreased by ¥93 million at the end of the cumulative first-quarter consolidated period.」

「Use of funds: The funds are scheduled to be allocated as capital expenditures to investments related to opening new rental meeting-room locations, including interior work, equipment purchases and security deposits; renovation work at Bayside Hotel Azur Takeshiba in Minato-ku, Tokyo; construction of an accommodation facility in Nishi-Kasai, Edogawa-ku, Tokyo, whose name has not been determined; and construction of an accommodation facility in Umeda, Fukushima-ku, Osaka, whose name has not been determined.」