FreeBit Co., Ltd.
Notice Regarding Execution of Agreement with Former President and Additional Voluntary Return of Executive Compensation
Announced a revision of the agreement concerning share acquisition with Mr. Ishida and an additional voluntary return of executive compensation. Plans to return the share acquisition price differential of 492,999,999 yen and to receive a settlement payment of 117,607,632 yen. Effects will be reflected in the fiscal year 2026 financial results, and related past corrections will be considered.
Key Figures
- 492,999,999 yen: Amount to be returned for share acquisition price differential
- 117,607,632 yen: Settlement payment amount
- Fiscal year ended April 2026: To be recorded as accounts receivable; payment scheduled on 2026-10-27
AI要約
Summary of the Agreement
The Company agreed with former President Mr. Ishida that, due to deficiencies in the valuation assumptions at the time of acquiring CU Co. shares, the share acquisition price differential of 492,999,999 yen will be returned and a settlement payment of 117,607,632 yen will be received. Accompanying this, the earn-out payment obligations will be waived. The decision was made following consultations with an internal review committee and external advisors. The Company plans to initiate subrogation claims with its insurer going forward.
Impact on Results and Financials and Next Steps
Due to adjustments, returns, and payments related to the share acquisition, the Company plans to record accounts receivable in the fiscal year ended April 2026 and process the receipt in the second quarter of the fiscal year ending April 2027. Corrections to transactions with CU Co. will be required; the Company will not restate prior consolidated financial statements and will reflect the cumulative impact in current period profit or loss.
FreeBit Co., Ltd.
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