Risk of Share-Value Dilution from Convertible Bonds with Stock Acquisition Rights
First written in FY2017. 4 of 10 entries say "Mitigated", first in FY2019-Q3. Latest entry: FY2023.
0 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「At a meeting of the Board of Directors held on 14 June 2023, the company resolved to acquire all of the outstanding 7th stock acquisition rights with commitment provisions and 8th stock acquisition rights with an exercise price to be determined in the future, issued on 19 July 2022, as of the acquisition date and to cancel all of those stock acquisition rights immediately after the acquisition.」
The company resolved to acquire and cancel the 577 outstanding 7th stock acquisition rights and 1,194 8th stock acquisition rights on 29 June 2023, indicating a reduction in dilution risk. - FY2023-Q3MaterialisedAnnual report
「Number of stock acquisition rights, etc. with adjustment provisions for the exercise price exercised during the quarter (units) 464; number of shares delivered upon exercise during the quarter (shares) 464,000; funds raised through exercise during the quarter (¥ thousands) 833,895」
The exercise of the 7th stock acquisition rights resulted in the delivery of 464,000 shares and raised ¥833.895 million in the third quarter. Cumulatively, 590,000 shares had been delivered and ¥1,058.151 million had been raised, with part of the potential shares converted into actual share issuance. - FY2023-Q2MaterialisedAnnual report
「7th stock acquisition rights: Number of stock acquisition rights, etc. with adjustment provisions for the exercise price exercised during the quarter (units) 126; number of shares delivered upon exercise during the quarter (shares) 126,000; funds raised through exercise during the quarter (¥ thousands) 224,256」
The exercise of the 7th stock acquisition rights resulted in the delivery of 126,000 shares, converting part of the potential equity value dilution risk into actual share issuance. - FY2023-Q1WorsenedAnnual report
「Number of potential shares from the issuance: 2,388,000 shares (1,000 shares per stock acquisition right)」
The issuance of the 7th and 8th stock acquisition rights newly created a total of 2,388,000 potential shares. Potential exposure to equity value dilution expanded again after the balance of the 4th through 6th stock acquisition rights had fallen to zero at the end of the previous fiscal year. - FY2022MitigatedAnnual report
「4th stock acquisition rights: common shares 2,000,000 - 2,000,000 - -; 5th stock acquisition rights: common shares 1,400,000 - 1,400,000 - -; 6th stock acquisition rights: common shares 680,000 - 680,000 - -」
The balance of the 4th through 6th stock acquisition rights, representing 4,080,000 shares, was zero at the end of the consolidated fiscal year, further reducing the dilution risk. - FY2020MitigatedAnnual report
「This was primarily due to a ¥508.600 million decrease in convertible bonds with stock acquisition rights as a result of early redemption, among other factors.」
The convertible bonds with stock acquisition rights were fully redeemed, reducing the dilution risk arising from the bonds. However, the 4th through 6th stock acquisition rights, representing 4,080,000 potential shares, remain outstanding. - FY2019RestatedAnnual 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.」
The risk of dilution of equity value associated with the exercise of the convertible bonds with stock acquisition rights and the 4th through 6th stock acquisition rights has been reaffirmed. - FY2019-Q3MitigatedAnnual report
「At a meeting of its Board of Directors held on 21 December 2018, the Company resolved to partially redeem early the first series of unsecured convertible bonds with stock acquisition rights issued on 9 June 2016. The early redemption was carried out on 7 January 2019.」
The partial early redemption of the convertible bonds with stock acquisition rights reduced the portion subject to potential share issuance and dilution arising from the bonds. However, the 4th through 6th stock acquisition rights remain outstanding. - FY2018WorsenedAnnual report
「Number of potential shares from the issuance: 4,080,000 shares」
The 4th through 6th stock acquisition rights were issued through a third-party allotment, adding 4,080,000 potential shares. The risk of dilution of equity value upon exercise expanded in addition to the existing risk from convertible bonds with stock acquisition rights. - FY2017First statedAnnual report
「If these stock acquisition rights are exercised, the value of the Company's shares on a per-share basis will be diluted in proportion to the number of shares issued upon conversion, and such dilution could affect the formation of the share price.」
For the convertible bonds with stock acquisition rights issued in June 2016, dilution of per-share value upon conversion into shares was disclosed as a risk.