Notice Regarding Issuance of the 41st Stock Acquisition Rights by Third-Party Allotment and Issuance and Purchase Agreement of the 42nd Stock Acquisition Rights

Summary of Capital Policy and Fundraising

Kubota Pharmaceutical Holdings Co., Ltd. announced a third-party allotment of 200,000 units of the 41st stock acquisition rights to EVO FUND and a third-party allotment of 200,000 units of the 42nd stock acquisition rights to Mr. Ryo Kubota. The 41st rights include an exercise price adjustment clause, partial exercise commitment conditions and exercise suspension provisions, and the funds raised will be allocated to R&D expenses and working capital. The 42nd rights have a fixed exercise price of 60 yen with a full ratchet clause and a long exercise period. The total is estimated at approximately 2,380 million yen. The notice also describes obtaining the Audit and Supervisory Committee's opinion and conditions for amending issuance terms, and explains that dilution of existing shareholders will occur.

Outlook and Risks

Funds are planned to be applied to R&D, commercialization expenses and working capital from 2027 onward. Development of emixstat hydrochloride will continue, and domestic and international partnerships will be pursued, including utilization of a Compassionate Use Program in France and regulatory responses. However, risks include dilution of shares and variability of funds raised depending on the exercise status of the 41st and 42nd rights, which could also affect the share price.