Risk of Restrictions on Conversion of Class Shares Being Lifted Due to Failure to Achieve Consolidated Operating Profit, Resulting in Dilution of Common Shares
First written in FY2025. 8 of 12 entries say "Materialised", first in FY2025. Latest entry: 2026-08-07.
Nippon Chemi-Con moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 2 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Achieved".
- 2026-08-07AchievedEarnings
「During the first quarter, the acquisition demand right in respect of all Class B Shares was exercised in exchange for common shares, and common shares were delivered.」
Confirmed that all Class B Shares had been converted into common shares and that the resulting dilution of existing common shares had reached the completion stage. - FY2026MaterialisedAnnual report
「The Company delivered common shares in response to the exercise, on 11 May 2026, 20 May 2026, 27 May 2026 and 1 June 2026, by Japan Industrial Solutions No. 3 Investment Limited Partnership, the holder of all of the Class B preferred shares issued by the Company, of its rights to request acquisition of all of its Class B preferred shares in exchange for common shares.」
All 3,001 Class B preferred shares had been converted into common shares by 1 June 2026, and a total of 3,294,091 common shares had been delivered. Further dilution of existing common shares has actually occurred. - FY2026-H1MaterialisedAnnual report
「Following the exercise by Class B preferred shareholders of their acquisition right with common shares as consideration, the Company acquired 363 Class B preferred shares as treasury shares on 17 September 2025 and 362 Class B preferred shares as treasury shares on 28 October 2025.」
Following the occurrence of the event triggering the lifting of conversion restrictions, the preferred shares were actually converted into common shares. On 17 September, 500,921 common shares were delivered in exchange for 363 preferred shares, and on 28 October, 499,541 common shares were delivered in exchange for 362 preferred shares, resulting in dilution of existing common shares. - FY2025MaterialisedAnnual report
「Because the Company's consolidated operating profit for the fiscal year ending March 2025 did not reach the level stipulated in the investment agreement, an event triggering the removal of the conversion restriction has occurred. If the acquisition right is exercised, the common shares held by existing shareholders may be diluted.」
Because consolidated operating profit for the fiscal year ended March 2025 fell below the 20% threshold of the ¥11.0 billion target stipulated in the investment agreement, an event triggering the lifting of conversion restrictions occurred, allowing the holders of Class A and Class B preferred shares to exercise their right to request acquisition in exchange for common shares before 31 March 2026.