Financing Risk if Stock Acquisition Rights Are Not Exercised
First written in FY2021-Q3. 7 of 9 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The exercise period for the fourth series of stock acquisition rights expired on 9 March 2026.」
The exercise period for the fourth series of stock acquisition rights expired, ending the uncertainty regarding funding from the unexercised portion of those rights. During the fiscal year, ¥356 million was raised through the exercise of rights covering 180,000 shares. - FY2026-H1MitigatedAnnual report
「Cash flows from financing activities were a cash outflow of ¥238 million (compared with a cash outflow of ¥1,753 million in the same period of the previous year). This was primarily because proceeds of ¥356 million were generated from the issuance of shares through the exercise of stock acquisition rights, while repayments of long-term borrowings of ¥425 million … were made.」
The exercise of stock acquisition rights raised ¥356 million, partially mitigating the risk of insufficient proceeds if the rights are not exercised. However, the outstanding unexercised portion is disclosed. - FY2025MitigatedAnnual report
「As of 25 April 2025, 1,800 rights, representing an exercise ratio of 11.90% of the total number issued, had been exercised, and 180,000 new shares had been issued.」
The partial exercise of stock acquisition rights advanced additional fundraising and share issuance, partially mitigating the risk of insufficient proceeds if the rights remain unexercised. However, outstanding stock acquisition rights remain. - FY2023MitigatedAnnual report
「During the fiscal year, 5,000 stock acquisition rights with an exercise price adjustment clause were exercised, resulting in proceeds of ¥991 million.」
The exercise of stock acquisition rights progressed, raising ¥991 million and partially mitigating the risk of insufficient proceeds if the rights are not exercised. However, rights equivalent to 869,700 shares remain unexercised. - FY2023-Q2MitigatedAnnual report
「Net cash provided by financing activities was ¥166 million, compared with net cash used in financing activities of ¥3,722 million in the same period of the previous year. This was mainly due to ¥756 million in repayments of long-term borrowings, unchanged from the same period of the previous year, and ¥68 million in repayments of lease liabilities, down 92.8% year on year, while the company received ¥991 million from the issuance of shares upon the exercise of share acquisition rights.」
The exercise of stock acquisition rights raised ¥991 million, partially mitigating the risk of insufficient proceeds if they are not exercised. However, some remain unexercised. - FY2023-Q1MitigatedAnnual report
「Common shares 300,600… (Note) 1. This represents an increase resulting from the exercise of stock acquisition rights.」
The partial exercise of stock acquisition rights advanced the issuance of common shares and raised funds, partially mitigating the risk of insufficient proceeds if the rights are not exercised. Uncertainty regarding the unexercised portion remains. - FY2022MitigatedAnnual report
「This was because proceeds of ¥283 million were generated from the issuance of shares through the exercise of stock acquisition rights, while there was a decrease of ¥2,000 million in the net change in short-term borrowings, repayments of long-term borrowings of ¥1,512 million, and repayments of lease obligations of ¥2,474 million.」
The partial exercise of stock acquisition rights raised ¥283 million, partially mitigating the risk of insufficient funding if they are not exercised. However, 1,369,700 shares remain subject to exercise. - FY2021RestatedAnnual report
「Exercise period for stock acquisition rights: 9 March 2021 to 9 March 2026」
The stock acquisition rights have been issued, with an exercise period from 9 March 2021 to 9 March 2026. The risk of insufficient proceeds if they are not exercised remains. - FY2021-Q3First statedAnnual report
「Exercise of the fourth-series stock acquisition rights depends on the investment decisions of the intended allottees, making this financing method uncertain. If the amount raised and estimated net proceeds from exercise decline, the Company may be unable to execute its planned business strategy or generate the expected earnings, and may be unable to secure sufficient shareholders’ equity, which could affect its results and financial position.」
The Company newly disclosed the risk that exercise depends on the investment decisions of the intended allottees and that insufficient exercise could reduce proceeds, hinder execution of the business plan and result in insufficient equity.