Risk of Increased Share Count and Dilution Associated with Convertible Bonds with Stock Acquisition Rights
First written in FY2017. 10 of 12 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2021-Q2.
Elecom moved to the "Worse" side of this theme in 2018.
1 other company's latest entry also says "Materialised".
- FY2021-Q2MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 823,600 Cumulative number of shares delivered under such instruments as of the end of the quarter (shares) 2,500,000」
The exercise of stock acquisition rights resulted in the delivery of 823,600 shares during the second quarter accounting period, bringing the cumulative number of shares delivered to 2,500,000. The increase in shares outstanding and dilution progressed further. - FY2021-Q1MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 763,000」
The exercise of stock acquisition rights subject to exercise price adjustment provisions resulted in the actual delivery of 763,000 shares during the first quarter accounting period, increasing the number of shares outstanding and dilution. - FY2020MaterialisedAnnual report
「Number of shares delivered upon exercise during the period (shares) 913,400」
The exercise of stock acquisition rights subject to exercise price adjustment provisions resulted in the actual delivery of 913,400 shares during the period, increasing the number of shares outstanding and dilution. - FY2020-Q3MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 494,400」
The exercise of stock acquisition rights subject to exercise price adjustment provisions resulted in the actual delivery of 494,400 shares during the third quarter accounting period, increasing the number of shares outstanding. - FY2019MaterialisedAnnual report
「Number of shares delivered upon exercise during the period (shares) 3,587,274」
The exercise of stock acquisition rights attached to convertible bonds resulted in the actual delivery of 3,587,274 shares during the period, further increasing the potential number of shares outstanding. - FY2019-Q3MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 997,699」
The exercise of stock acquisition rights attached to convertible bonds resulted in the actual delivery of 997,699 shares during the third quarter accounting period, further increasing the number of shares outstanding. - FY2019-Q2MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 916,729」
The exercise of stock acquisition rights attached to convertible bonds resulted in the actual delivery of 916,729 shares during the second quarter accounting period, further increasing the number of shares outstanding. - FY2019-Q1MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 558,953」
The exercise of stock acquisition rights attached to convertible bonds resulted in the actual delivery of 558,953 shares during the first quarter accounting period, increasing the number of shares outstanding. - FY2018MaterialisedAnnual report
「Cumulative number of shares delivered under such instruments as of the end of the period (shares) — Cumulative number of shares delivered in fiscal year 33 (shares) 207,400」
For convertible bonds with stock acquisition rights under which the number of shares delivered may increase when the share price declines or under similar circumstances, 207,400 shares were actually delivered over the full fiscal year. - FY2018-Q3MaterialisedAnnual report
「Number of shares delivered upon exercise during the quarter (shares) 20,833」
The exercise of stock acquisition rights attached to convertible bonds resulted in the actual delivery of 20,833 shares, bringing the potential increase in shares into effect. - FY2018-Q1Quantification of Potential DilutionAnnual report
「Increase in common shares (thousand shares) 4,073」
For potential shares related to convertible bonds with stock acquisition rights, an increase of 4,073 thousand common shares was shown in the calculation of diluted earnings per share. This does not indicate that the stock acquisition rights were actually exercised or that shares were issued. - FY2017First statedAnnual report
「The number of the Company's common shares delivered upon exercise of these stock acquisition rights varies with revisions to the price used to calculate the number of the Company's common shares delivered upon exercise of each stock acquisition right, referred to below as the conversion price. Accordingly, if the share price declines, the number of shares delivered may increase.」
The mechanism that may increase the number of shares delivered when the share price declines as a result of revisions to the conversion price is disclosed in detail as a new capital markets risk.