Risk of Shareholder-Value Dilution from the Exercise of Stock Acquisition Rights
First written in FY2016. 8 of 15 entries say "Worsened", first in FY2017-Q1. Latest entry: FY2026-H1.
FreakOut Holdings moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 28 of 54 companies on the "Worse" side.
32 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Class, description and number of shares underlying the stock acquisition rights (shares)* Common shares: 20,000 (Note 1)」
The Series 15 stock acquisition rights for external collaborators added a potential source of dilution equivalent to 20,000 common shares. - FY2025WorsenedAnnual report
「Series 16 Stock Acquisition Rights Number of stock acquisition rights (rights)* 850 (Note 1) Class, description and number of shares underlying the stock acquisition rights (shares)* Common shares: 85,000 (Note 1)」
The newly disclosed Series 16 stock acquisition rights equivalent to 85,000 shares, intended for employees and others of wholly owned subsidiaries, added a potential source of share-value dilution. - FY2023-Q1MitigatedAnnual report
「Increase in common shares (shares) 214,960 (of which stock acquisition rights (shares)) (214,960) (of which convertible bond-type bonds with stock acquisition rights (shares)) (-)」
For purposes of calculating diluted earnings per share, the increase in common shares was 214,960, with no increase attributable to convertible bond-type bonds with stock acquisition rights. The composition of potential shares has contracted from 1,388,691 shares at the end of the previous fiscal year. - FY2022-Q3MitigatedAnnual report
「1. Reason for purchase and cancellation: Preventing dilution through early purchase and enhancing share value over the medium to long term」
The Group indicated that it would prevent dilution from the conversion of the bonds by purchasing and cancelling early the entire outstanding balance of the 3rd Series Convertible Bond-Type Bonds with Stock Acquisition Rights. - FY2022-Q1Update to the composition of potential sharesAnnual report
「Increase in common shares (shares) 1,388,691 (of which stock acquisition rights (shares)) (430,837) (of which convertible bond-type bonds with stock acquisition rights (shares)) (957,854)」
The increase in common shares used to calculate diluted earnings per share was 1,388,691, comprising 430,837 shares attributable to stock acquisition rights and 957,854 shares attributable to convertible bond-type bonds with stock acquisition rights. - FY2021-Q1WorsenedAnnual report
「Class and number of shares underlying stock acquisition rights (shares)* Common shares: 912,000 shares (Note 1) Increase in common shares (shares) 2,110,793 (of which stock acquisition rights (shares)) (35,205) (of which convertible bond-type bonds with stock acquisition rights (shares)) (2,075,588)」
Stock options covering 912,000 new shares were issued, and potential shares include 2,075,588 shares attributable to convertible bond-type bonds with stock acquisition rights, among other items. - FY2020WorsenedAnnual report
「Stock acquisition rights attached to the 2nd Series Unsecured Convertible Bond-Type Bonds with Stock Acquisition Rights Common shares: 1,117,734 Stock acquisition rights attached to the 3rd Series Unsecured Convertible Bond-Type Bonds with Stock Acquisition Rights Common shares: 957,854 10th Series Stock Acquisition Rights Common shares: 221,400」
While potential shares decreased following the expiry of the exercise period for the 1st Series Convertible Bond-Type Bonds with Stock Acquisition Rights, new potential shares arose from the 2nd and 3rd Series Convertible Bond-Type Bonds with Stock Acquisition Rights and the 10th Series Stock Acquisition Rights. - FY2020-Q3WorsenedAnnual report
「Potential shares from this issuance: 1,117,734 common shares」
After the end of the quarter, resolutions were passed to issue the 2nd and 3rd Series Convertible Bond-Type Bonds with Stock Acquisition Rights and the 10th Series Stock Acquisition Rights. The disclosed potential shares were 1,117,734 and 957,854 shares for the convertible bond-type bonds with stock acquisition rights, and 971,400 shares for the 10th Series Stock Acquisition Rights. - FY2019Changes in the composition of potential sharesAnnual report
「As of the date of submission of the Annual Securities Report, the number of potential shares attributable to stock acquisition rights was 757,100, equivalent to 4.8% of the total number of issued shares. As of the date of submission of the Annual Securities Report, the number of potential shares from the conversion of these convertible bond-type bonds with stock acquisition rights was 1,193,310, equivalent to 7.5% of the total number of issued shares. As of the date of submission of the Annual Securities Report, the number of potential shares attributable to TIP stock acquisition rights was 600,000, comprising 320,000 shares from the 8th Series Stock Acquisition Rights and 280,000 shares from the 9th Series Stock Acquisition Rights, equivalent to 3.8% of the total number of issued shares.」
While ordinary stock acquisition rights represented 757,100 potential shares, or 4.8%, convertible bond-type bonds with stock acquisition rights increased to 1,193,310 shares, or 7.5%, and TIP was disclosed at 600,000 shares, or 3.8%. - FY2018WorsenedAnnual report
「As of the date of submission of the Annual Securities Report, the number of potential shares attributable to stock acquisition rights was 763,500, equivalent to 5.7% of the total number of issued shares. As of the date of submission of the Annual Securities Report, the number of potential shares from the conversion of these convertible bond-type bonds with stock acquisition rights was 1,180,440, equivalent to 8.9% of the total number of issued shares. As of the date of submission of the Annual Securities Report, the number of potential shares attributable to TIP stock acquisition rights was 600,000, comprising 320,000 shares from the 8th Series Stock Acquisition Rights and 280,000 shares from the 9th Series Stock Acquisition Rights, equivalent to 4.5% of the total number of issued shares.」
In addition to stock acquisition rights, the number of potential shares and the ratio to issued shares attributable to convertible bond-type bonds with stock acquisition rights and TIP stock acquisition rights were disclosed, expanding dilution exposure. - FY2017WorsenedAnnual report
「As of the date of submission of the Annual Securities Report, the number of potential shares attributable to stock acquisition rights was 773,500, equivalent to 5.8% of the total number of issued shares.」
The filing company’s potential shares increased from 700,000 to 773,500, or 5.8%. In addition, 944,370 shares, or 7.1%, attributable to convertible bond-type bonds with stock acquisition rights, and 600,000 shares, or 4.5%, attributable to TIP stock acquisition rights were disclosed, expanding dilution exposure. - FY2017-Q3RestatedAnnual report
「1st Series Stock Acquisition Rights issued by the consolidated subsidiary Intimate Merger,Inc.: 14,054 units (Filing company) 7th Series Stock Acquisition Rights: 7,000 units (Consolidated subsidiary) 2nd Series Stock Acquisition Rights issued by the consolidated subsidiary Intimate Merger,Inc.: 1,765 units」
The calculation of potential shares continues to disclose, among other items, the filing company’s 7th Series Stock Acquisition Rights, comprising 7,000 units. - FY2017-Q2RestatedAnnual report
「The stock acquisition rights issued during the second quarter accounting period were as follows. Number of stock acquisition rights 7,000 units (Notes 1 and 2) Class and number of shares underlying stock acquisition rights Common shares of the Company: 700,000 shares」
The 7,000 stock acquisition rights covering 700,000 shares disclosed in the previous quarter continued to be disclosed in the statement of shares and other securities for the current quarter. - FY2017-Q1WorsenedAnnual report
「Class and number of shares underlying stock acquisition rights Common shares of the Company: 700,000 shares」
As a subsequent event, the issuance of stock acquisition rights covering 700,000 shares was disclosed, increasing the potential number of shares from the previously reported 112,800 shares, or 0.9% of total issued shares. - FY2016First statedAnnual report
「As of the end of the consolidated fiscal year, the number of potential shares attributable to stock acquisition rights was 112,800, equivalent to 0.9% of the total number of issued shares.」
The potential dilution of shareholder value and impact on share price formation from the exercise of stock acquisition rights are quantified as 112,800 shares, or 0.9%.