Strengthening the Financial Position and Securing External Funding and Shareholder Support

「② Execution of a commitment line agreement with Mitsubishi UFJ Bank ③ Early repayment of subordinated borrowings under the subordinated monetary loan agreement with the same bank ④ Termination of the loan agreement previously executed with Mitsubishi Corporation Financial Services Co., Ltd. (a wholly owned subsidiary of Mitsubishi Corporation)」

「The purpose is to secure a stable and flexible funding structure to meet working-capital requirements.」

「In addition, the company has maintained close communication and close cooperation with its financial institutions, including entering into a loan agreement with MUFG Bank on 24 July 2024 and drawing down the loan on 31 July.」

「The company has secured sufficient liquidity by entering into a total ¥10 billion credit facility with Mitsubishi Corporation Financial Services Co., Ltd., a wholly owned subsidiary of Mitsubishi Corporation.」

「With respect to borrowings, the company has an ¥80 billion credit facility with Mitsubishi Corporation Financial Services Co., Ltd., a wholly owned subsidiary of Mitsubishi Corporation.」

「During the first quarter consolidated accounting period, the company renewed its loan agreement with Mitsubishi Corporation Financial Services Co., Ltd. on 21 May 2021 as part of a framework for rehabilitation support.」

「From a financial perspective, the reduction in stated capital and capital reserves and the disposition of retained earnings approved at the shareholders’ meeting held in June 2020 became effective on 7 August 2020. This eliminated the company’s standalone accumulated losses of ¥135.494 billion as of the end of March 2020 and improved its financial position.」

「From a financial perspective, at the shareholders’ meeting held in June 2020, the company approved a proposal to reduce the amounts of stated capital and capital reserves and dispose of retained earnings in order to eliminate the company’s standalone accumulated losses, which stood at ¥135.494 billion as of the end of March 2020, and improve its financial position.」

「The execution on 1 July 2019 of a ¥70 billion private placement with Mitsubishi Corporation as the allottee eliminated the negative net worth. In addition, the execution of ¥20 billion in financing from MUFG Bank and a ¥90 billion loan agreement with an affiliate of Mitsubishi Corporation avoided the risk of a cash shortfall.」

「At a meeting of the board of directors held on 9 May 2019, the company resolved to issue Class A preferred shares by way of a private placement and to borrow funds, referred to below as the “Borrowing” and, together with the issuance of the Class A preferred shares, the “Financing,” as described below. On 1 July 2019, the payment procedures were completed and the borrowing was executed.」

「At a meeting of the board of directors held on 9 May 2019, the company resolved to raise a total of ¥180 billion from Mitsubishi Corporation and MUFG Bank to strengthen the financial foundation required to continue the business, and reached agreement with both companies.」

「The company is pursuing discussions, without ruling out any options, including alliances with industrial partners and financial investors and funding from lenders, and is working to reach an agreement promptly. Based on the plan revisions described above, it is discussing with its largest shareholder, Mitsubishi Corporation, and other stakeholders the measures needed to secure funds for the business, including requests for financial support.」

「The company will seek to strengthen its financial position without ruling out any options, including alliances with industrial partners and financial investors and funding from lenders. Based on the plan revisions described above, it will discuss with its largest shareholder, Mitsubishi Corporation, and other stakeholders the measures needed to secure funds for the business, including requests for financial support.」