Uncertainty over the Amount and Timing of Capital Raising Due to Unexercised Stock Acquisition Rights
First written in FY2018. 1 of 6 entries say "Dropped", first in FY2019. Latest entry: FY2023.
2 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「Seventh Series Stock Acquisition Rights Number of exercise-price-adjustable bonds with stock acquisition rights, etc., exercised during the period (rights) 617 Cumulative number of shares delivered in connection with exercise-price-adjustable bonds with stock acquisition rights, etc., as of the end of the period (shares) 617,000」
While 617 Seventh Series Stock Acquisition Rights, representing 617,000 shares, were exercised, resolutions were passed to acquire and cancel the remaining rights and the Eighth Series Stock Acquisition Rights, indicating reduced uncertainty over funds to be raised from unexercised rights. - FY2023-Q3Additional partial exercise resultsAnnual report
「During the third quarter, share acquisition rights relating to bonds with share acquisition rights and other instruments with an exercise price adjustment clause were exercised as follows.」
The Seventh Series Stock Acquisition Rights were partially exercised further, with results disclosed for the third quarterly accounting period of 464,000 shares and ¥833.895 million. Meanwhile, the Eighth Series Stock Acquisition Rights remained unexercised, leaving uncertainty over the amount and timing of funds to be raised. - FY2023-Q2Disclosure of partial exercise resultsAnnual report
「During the second quarter, the stock acquisition rights related to stock acquisition rights, etc. with adjustment provisions for the exercise price were exercised as follows.」
The Seventh Series Stock Acquisition Rights were partially exercised, with results disclosed of 126 rights, 126,000 shares and ¥224.256 million. Meanwhile, the Eighth Series Stock Acquisition Rights remained unexercised, leaving uncertainty over the amount and timing of funds to be raised. - FY2023-Q1Re-disclosure of uncertainty over the amount and timing of funds to be raisedAnnual report
「The total value of the assets contributed upon exercise of these stock acquisition rights is based on the assumption that all of these stock acquisition rights are exercised at the initial exercise price. If the exercise price is revised or adjusted, the amount of funds raised will increase or decrease. In addition, if the rights are not exercised during the exercise period or if the stock acquisition rights acquired by the Company are cancelled, the amount of funds raised will decrease.」
The filing again explicitly stated the uncertainty that the planned amount of funds raised could fluctuate or decrease due to revisions or adjustments to the exercise price of the stock acquisition rights, uncompleted exercise, or acquisition and cancellation of the rights. - FY2019DroppedAnnual report
「If the stock acquisition rights are exercised, the value of our equity on a per-share basis will be diluted in proportion to the percentage converted into shares, and the dilution may affect share price formation.」
There was no separate disclosure explaining the uncertainty over the timing of exercise or the amount to be raised from the stock acquisition rights; it was categorized as dilution risk. - FY2018First statedAnnual report
「Whether payment will be made upon exercise of these stock acquisition rights and the timing of exercise depend on the decisions of the holders of the stock acquisition rights. In addition, the rights may not be exercised if, for example, the share price remains below the exercise price over an extended period, and the exercise price of these stock acquisition rights may be adjusted. Accordingly, the amount and timing of funds that can be raised are not fixed at this point, and may differ from the amount of funds currently anticipated and the scheduled timing of expenditures.」
A new risk was disclosed: because exercise of the stock acquisition rights depends on investors' decisions, the planned maximum amount to be raised of ¥11,024,363,600 and the expenditure period from June 2018 through June 2021 had not been fixed.