Decision and Details
Board of DirectorsCreation of a share pledge over the common shares of the Company held by the founder
To address short-term, additional working capital needs, including the advance payment of advertising costs, arising from the expansion of advertising transaction volume in the ADWAYS CHINA-related business, establish transaction terms, and limit the additional dilution burden on existing shareholders
No material impact on consolidated results for the fiscal year ending July 2026 is currently expected
| Item | Details |
|---|---|
| Matter Covered | Creation of a share pledge over the common shares of the Company held by the founder |
| Decision-Making Body | Board of Directors |
| Decision Date | 30 April 2026 |
| Implementation Date | Already implemented (specific implementation date: Not disclosed) |
| Period Covered | Period during which the collateral is expected to be released, generally over approximately six months |
| Quantity / scale | The number of pledged shares represents a market value exceeding twice the amount of the underlying debt (actual number: Not disclosed) |
| Impact on Business Performance | No material impact on consolidated results for the fiscal year ending July 2026 is currently expected |
| Reason | To address short-term, additional working capital needs, including the advance payment of advertising costs, arising from the expansion of advertising transaction volume in the ADWAYS CHINA-related business, establish transaction terms, and limit the additional dilution burden on existing shareholders |
| Related previous disclosures | Resolution at the Board of Directors meeting held on 30 April 2026 to issue new shares through a third-party allotment to Adways Inc. as the scheduled allottee (title: Not disclosed) |
| Future plans | The underlying debt is scheduled to be repaid in installments on 19 May 2026, 1 August 2026 and 1 November 2026. Repayment will proceed as accounts receivable are collected, and the collateral is expected to be released generally over approximately six months. |
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.Advertising transaction volume in the ADWAYS CHINA-related business expanded faster than expected, creating short-term, additional working capital needs, including the advance payment of advertising costs, due to the time lag between placing advertisements and collecting accounts receivable. The Company also cites the objective of expanding its business and earnings opportunities in the Chinese market while limiting the additional dilution burden on existing shareholders.