Dilution of share value from the exercise of stock acquisition rights
First written in FY2023. 6 of 9 entries say "Worsened", first in FY2024-Q2. Latest entry: FY2026-H1.
The whole theme swung hardest in 2017: 37 of 68 companies on the "Worse" side.
- FY2026-H1WorsenedAnnual report
「The Eleventh Series of Stock Acquisition Rights Resolution date 14 April 2026 Category and number of eligible recipients (people)* Employees of the Company 40 Number of stock acquisition rights (rights)* 420 Class, description and number of shares underlying the stock acquisition rights (shares) Common shares 42,000」
Pursuant to the resolution of 14 April 2026, additional stock acquisition rights covering 42,000 shares were granted to 40 employees. New potential dilution exposure to equity value was disclosed. - FY2025WorsenedAnnual report
「As of 31 October 2025, the number of potential shares represented by stock acquisition rights was 99,500, equivalent to 6.6% of the 1,519,300 issued shares.」
The potential share ratio rose from 4.8% to 6.6%. It was also disclosed as a post-reporting-date event that all stock acquisition rights granted to Directors, Audit and Supervisory Committee Members, and employees in February 2025 were acquired and cancelled on 19 December 2025. - FY2025-H1WorsenedAnnual report
「The Eighth Series of Stock Acquisition Rights Directors of the Company, excluding Directors who are Audit and Supervisory Committee Members 2 The Ninth Series of Stock Acquisition Rights Directors of the Company who are Audit and Supervisory Committee Members 3 The Tenth Series of Stock Acquisition Rights Employees of the Company 33」
Pursuant to the resolution of 27 February 2025, a total of 655 stock acquisition rights covering 65,500 shares were granted to Directors, Directors who are Audit and Supervisory Committee Members, and employees. New potential dilution exposure was added. - FY2024MitigatedAnnual report
「As of 31 October 2024, the number of potential shares represented by stock acquisition rights was 72,800, equivalent to 4.8% of the 1,503,300 issued shares.」
The potential share ratio declined from the previously reported 131,200 shares, or 9.5%, to 72,800 shares, or 4.8%. Meanwhile, 68,000 shares were issued upon the exercise of stock acquisition rights during the fiscal year. - FY2024-Q2WorsenedAnnual report
「At a meeting of the Board of Directors held on 12 June 2024, the Company resolved to issue stock acquisition rights to its employees as stock options, without consideration, pursuant to Articles 236, 238 and 239 of the Companies Act, as set out below.」
The Company disclosed a resolution to newly issue 215 stock acquisition rights to employees, with each right covering 100 shares, adding potential dilution exposure. During the quarter, 12,000 new shares were also issued upon the exercise of stock acquisition rights. - FY2024-Q1MaterialisedAnnual report
「In addition, the issuance of new shares upon the exercise of stock acquisition rights increased stated capital and capital reserves by ¥14.375 million each.」
The issuance of 46,000 shares upon the exercise of stock acquisition rights actually occurred, creating a potential source of dilution to equity value. - FY2023First statedAnnual report
「As of 31 October 2023, the number of potential shares represented by stock acquisition rights was 131,200, equivalent to 9.5% of the total 1,378,000 shares issued.」
The company has adopted stock options as an incentive for officers and employees, and the disclosure identifies the possibility of dilution upon exercise.