Notice of Schedule Change for the Establishment of a Joint Holding Company between Joyful Honda Co., Ltd. and ArcLands Co., Ltd. (Stock Transfer)

Overview

This is a notice of changes to the schedule for finalizing the agreement and approving the stock transfer in relation to the establishment of a joint holding company between Joyful Honda and ArcLands. The reason for the change is the disclosure that ArcLands has established a Special Investigation Committee and there are suspicions of inappropriate accounting by Pets First Holdings; the two companies state that they will scrutinize the schedule and procedures taking into account the progress of the investigation and its impact on consolidated financial figures. As of now, no new schedule has been set, and future announcements will be determined according to the progress of the investigation.

Outlook and Impact

The timing for final contract execution and approval of the stock transfer plan by the board is undetermined, and the effective date is also undetermined. Depending on the investigation results, feasibility will be re-evaluated, and the two companies will continue discussions. For investors, progress in this matter could affect the realization of the joint holding company and shareholder value, so ongoing disclosures should be monitored.