Notice Regarding Determination of Number of Shares to Be Issued in a Third-Party Allocation of New Shares

Overview of Capital Policy

Hennge K.K. decided at the Board of Directors meeting held on October 2, 2026 to conduct a third-party allocation of new shares, and the final number of shares to be issued was determined to be 372,000 shares. The total subscription proceeds amount to 645,643,200 yen, and the amounts of increased capital and capital surplus are each 322,821,600 yen. The subscription date is November 10, 2026, and the payment date is November 11, 2026. The current total number of outstanding shares is 33,600,600 shares, and following the capital increase the total will be 33,972,600 shares.

Use of Funds and Future Capital Utilization

Of the total funds raised of 2,534,803,200 yen, they will be allocated together with estimated net proceeds of 1,894,160,000 yen from a public offering resolved on the same date as the third-party allocation. The main uses are advertising expenses (including strengthening the HENNGE One brand) and personnel recruitment expenses, with the remaining balance to be used for working capital. Specifically, the plan is to allocate 1,035 million yen to advertising expenses by the fiscal year ending September 2027, 1,011 million yen by the fiscal year ending September 2028, and 317 million yen to recruitment expenses by the fiscal year ending September 2027.