Decision and Details
The Company's Board of DirectorsTermination of the commitment-type term loan facility agreement
AXEL MARK INC. shifted its policy toward prioritizing equity financing, which does not require repayment, rather than debt financing through borrowings, in light of the expected continuation of operating losses and other factors, eliminating the basis for this facility agreement.
The termination itself will have no impact on the Company's consolidated results for the fiscal year ending March 2027. The impact of AXEL MARK INC.'s business and financial condition on the Company's consolidated results will continue to be monitored closely.
| Item | Details |
|---|---|
| Matter Covered | Termination of the commitment-type term loan facility agreement |
| Decision-Making Body | The Company's Board of Directors |
| Decision Date | 22 October 2026 |
| Implementation Date | 22 October 2026 (termination completed) |
| Amount | Lending limit of ¥3 billion; total subscription payment for the private placement of shares of ¥900 million |
| Impact on Business Performance | The termination itself will have no impact on the Company's consolidated results for the fiscal year ending March 2027. The impact of AXEL MARK INC.'s business and financial condition on the Company's consolidated results will continue to be monitored closely. |
| Reason | AXEL MARK INC. shifted its policy toward prioritizing equity financing, which does not require repayment, rather than debt financing through borrowings, in light of the expected continuation of operating losses and other factors, eliminating the basis for this facility agreement. |
| Governing Rule | Article 369, Paragraph 2 of the Companies Act |
| Related previous disclosures | 29 May 2026, “Notice concerning the acquisition of shares of AXEL MARK INC. (Securities code: 3624), making it a consolidated subsidiary, and the execution of a commitment-type term loan facility agreement” |
| Future plans | For the time being, AXEL MARK INC. will consider M&A within the amount of funds raised through this private placement of shares. For large-scale M&A exceeding that amount, it will consider raising funds through equity financing and other means. The Company intends to provide necessary support and will promptly disclose any matters requiring disclosure. |
Items this document does not state (2)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.AXEL MARK INC. shifted its financial strategy toward prioritizing equity financing, which does not require repayment, rather than debt financing through borrowings, in light of the expected continuation of operating losses and other factors, eliminating the basis for the agreement. The Company determined that terminating the agreement was reasonable for maintaining the company's financial soundness and corporate value.