Acquisition and Cancellation of the 3rd to 5th Series of Warrants Issued through Third-Party Allotment (Exercise Price Adjustment Provisions) and Change in Use of Funds

Funding for investment and handling of stock acquisition rights

Today, by resolution of the Board of Directors, the acquisition and cancellation of the 3rd to 5th series stock acquisition rights (with exercise price adjustment provisions) issued on December 29, 2025 will be implemented. Acquisition and cancellation are scheduled for September 30, 2026. As a result, all potential shares will be extinguished, eliminating dilution risk. The use of funds up to now has been changed, and 1,625,694 thousand yen of undrawn funds is expected to be excluded from future additional fundraising targets. If the fund-raising through these stock acquisition rights continues, the funding plan will be revised, and investment in the Sovereign GaiXer business will be restructured into a phased, demand-driven approach.

Outlook and strategy

The Sovereign GaiXer business has completed productization, and going forward, investment scale and timing will be determined in phases based on order progress and project-specific profitability. At present, the assumption of funding the full undrawn amount from external funds is withdrawn, and if additional funds are required, debt financing and other means will be considered. We will disclose promptly as further announcements are made.