Dilution of equity value and ownership from the private placement to Suwa
First written in FY2019. 16 of 22 entries say "Materialised", first in FY2022-Q1. Latest entry: 2026-09-28.
Japan Display moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 18 of 36 companies on the "Worse" side.
44 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Partial exercise of the 14th series of stock acquisition rights issued by the company has taken place, as outlined below.」
Of the 14th Series of Share Acquisition Rights for Ichigo Trust, 10 were exercised on 13 May 2026 and 5 on 19 June 2026, resulting in the issuance of a total of 577,866,660 common shares. The potential dilution progressed into actual share issuance. - FY2026-H1MaterialisedAnnual report
「On 15 July 2025, the company issued the 14th Series of Share Acquisition Rights through a third-party allotment to Ichigo Trust. The terms of the 14th Series of Share Acquisition Rights are as follows.」
The 14th series of stock acquisition rights for Ichigo Trust was actually issued, providing for 3,852,444,400 potential shares and maximum proceeds of approximately ¥96.3 billion upon exercise. The potential dilution risk thereby took concrete form as a new source of capital. - FY2023MaterialisedAnnual report
「The total number of shares, calculated by adding the 2,308,329,640 shares to be delivered if all Class E preferred shares are converted into common shares to the 3,852,444,400 shares to be delivered if all of the 13th Series Stock Acquisition Rights are exercised, is 6,160,774,040 shares, equivalent to a dilution ratio of 158.77%.」
The company conducted a private placement of 1,926,222,222 common shares to Ichigo and disclosed potential dilution of up to 158.77% from Class E preferred shares and the 13th Series Stock Acquisition Rights. - FY2023-Q3MaterialisedAnnual report
「Through the conversion into these common shares, Ichigo Trust became the company's controlling shareholder.」
Ichigo Trust exercised its conversion rights on 372,000,000 Class B preferred shares and 500 Class D preferred shares on 26 January 2023, and a total of 658,000,000 common shares were delivered. Dilution and a change in control associated with the conversion of the preferred shares actually occurred. - FY2022MaterialisedAnnual report
「The increase in common shares resulted from the exercise by Ichigo Trust of acquisition rights, or conversion rights, for 300,000,000 Class B preferred shares, with common shares as consideration.」
The dilution risk progressed into an actual share issuance, with 450,000,000 common shares added through the conversion of Class B preferred shares. The total number of potential shares represented by the remaining preferred shares was stated as 3,047,662,973, with a dilution rate of 205.00%. - FY2022-Q3MaterialisedAnnual report
「During the cumulative period of the third quarter, the company received payment for the partial exercise by Ichigo Trust, the allottee, of the 12th series of stock acquisition rights issued on 28 August 2020. As a result, capital stock and capital surplus each increased by ¥12,465 million.」
Partial exercises of the 12th Series of Share Acquisition Rights by Ichigo Trust progressed, and stated capital and capital reserves each increased by ¥12,465 million in connection with the issuance of preferred shares. The assumptions underlying dilution from the capital restructuring became more concrete. - FY2022-Q2MaterialisedAnnual report
「The company received payment from Ichigo Trust, the allottee, following the partial exercise of the 12th Series Stock Acquisition Rights issued on 28 August 2020. As a result, during the cumulative second quarter consolidated accounting period, stated capital and the capital reserve each increased by ¥12,465 million.」
The partial exercise by Ichigo Trust of the 12th Series Stock Acquisition Rights resulted in the issuance of 2,493 Class E preferred shares, increasing stated capital and the capital surplus by ¥12,465 million each. The dilution risk associated with the capital restructuring progressed to an actual share issuance. - FY2022-Q1MaterialisedAnnual report
「Class and number of shares delivered in connection with the stock acquisition rights exercised this time: Series E preferred shares of Japan Display Inc., 1,662 shares」
The dilution risk associated with the transition from a third-party allotment to Suwa to a capital restructuring for Ichigo Trust materialized with the issuance of 1,662 Class E preferred shares. 7 unexercised stock acquisition rights also remain. - FY2020ReframedAnnual report
「Issuance of Series B preferred shares of Japan Display Inc. through a third-party allotment to Ichigo Trust, with total proceeds of ¥50.4 billion, and issuance of the 11th series of stock acquisition rights of Japan Display Inc.」
The dilution risk based on the third-party allotment to Suwa shifted following Suwa's failure to invest and termination of the agreement, becoming dilution risk from Series B preferred shares worth ¥50.4 billion for Ichigo Trust and stock acquisition rights intended to acquire Series C preferred shares. - FY2020-Q3ReframedAnnual report
「Subsequently, after receiving notification from a prospective investor that it would not invest in Suwa, among other developments, the company held repeated discussions with multiple prospective financial investors, customers and business partners, in cooperation with INCJ, in order to respond flexibly even if the prospective investors did not make their investments.」
The dilution risk premised on the Suwa third-party allotment moved toward disappearing following the failure of Suwa's investment and the cancellation of the plan, while the basis of the risk changed to a capital restructuring involving preferred shares and share acquisition rights issued to Ichigo Trust and INCJ. - FY2020-Q1ReframedAnnual report
「The total issue price of the second series of bonds with stock acquisition rights was ¥8,000,000,000, for 160,000,000 common shares, while the total issue price of the third series of bonds with stock acquisition rights was ¥30,000,000,000, for 600,000,000 common shares.」
For the bond component of the third-party allotment to Suwa, the company disclosed the amended terms, under which the second series of bonds with stock acquisition rights would be ¥8 billion and 160 million shares, and the third series ¥30 billion and 600 million shares. Payment is subject to the satisfaction of multiple conditions, and the dilution risk had not yet materialized before execution. - FY2019First statedAnnual report
「The issuance of new shares through a third-party allotment, and the exercise of the stock acquisition rights allocated through third-party allotments of the second and third series of bonds with stock acquisition rights, may dilute the value per share and ownership percentage of the Company's common stock and adversely affect the Company's share price.」
The dilution risk associated with the potential issuance of 840,000,000 common shares, 360,000,000 shares through the Second Series Convertible Bonds with Stock Acquisition Rights and 400,000,000 shares through the Third Series Convertible Bonds with Stock Acquisition Rights, pursuant to the third-party allotment to Suwa approved on 12 April 2019, was disclosed for the first time.