Supplementary Explanation Materials on the Issuance of New Shares through a Third-Party Allotment and the Issuance of the First Unsecured Ordinary Bond — Raising a total of 4.0 billion yen to accelerate R&D for the next-generation pipeline

Overview of the financing

This supplementary explanatory document specifies a total funding of 4.0 billion yen raised through the issuance of new shares via a third-party allotment and the issuance of the first unsecured ordinary bonds with the same sponsor. The allottee is JICVGI Opportunity Fund No. 1 Investment Limited Partnership, with an issuance amount of 3.0 billion yen in new shares and 1.0 billion yen in bonds, designed to minimize dilution. The use of funds is disclosed as accelerating R&D for the second-generation cardiomyocyte sheet and expanding ReHeart-related businesses.

Relation between business strategy and capital policy

The purpose of the financing is to expand growth drivers after ReHeart's domestic approval and to strengthen R&D across the pipeline including overseas expansion. Specifically, plans to accelerate development in the areas of the second-generation cardiomyocyte sheets, catheter treatments, in vivo regenerative factor inducers, and MSCs. The allottee is an investment partnership backed by a government-related fund, expected to provide long-term growth support.