Risk of Early Redemption and Financing Due to a Breach of CB Financial Covenants
First written in FY2024-Q1. 1 of 3 entries say "Worsened", first in FY2024-Q2. Latest entry: FY2024.
5 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「All conversions of the first unsecured convertible bonds with stock acquisition rights issued by us through a third-party allotment to Macquarie Bank Limited on 31 August 2023 were completed by 22 November 2024.」
Although the CB financial covenant breach remained as of the fiscal year-end, all CBs had been converted by the filing date following ¥20 million of early redemption and ¥140 million in aggregate repurchases for cancellation. - FY2024-Q2WorsenedAnnual report
「We again breached the financial covenants specified in the CB relating to the average daily trading value of our common shares in regular trading and the balance of cash and cash equivalents reported in the condensed quarterly consolidated financial statements.」
The CB's financial covenants relating to average daily trading value and cash and cash equivalents were breached again, and reliance continues on the conditions for obtaining a deferral of the right to exercise early redemption through 30 June 2024. - FY2024-Q1First statedAnnual report
「Although we issued the first unsecured convertible bonds with stock acquisition rights, allocated to Macquarie Bank Limited (Macquarie), and raised ¥210 million on 31 August 2023, breaches of the CB's financial covenants have resulted in the existence, as of the end of the previous consolidated fiscal year, of events or circumstances that give rise to significant doubt about the going-concern assumption.」
The financial covenants on the CB, for which ¥210 million was raised, were actually breached. A response is required involving a waiver of the right to exercise early redemption, maintenance of specified cash balances and share prices, and additional redemption.