Notice of Completion of Payment for Transfer-Restricted Stock as Treasury Stock Acquisition

Overview

Toha Pharmaceutical announced the completion of payment for the disposal of treasury stock as part of share compensation with transfer restrictions. The target disposal is 1,188 of the company’s common shares, at 3,835 yen per share, for a total of 4,555,980 yen. Disposed to three company directors (excluding outside directors and those subject to long-term performance-linked stock-based compensation), with payment date on July 10, 2026.

Impact and Outlook

This notice confirms the practical completion of the disposal of treasury stock as share compensation and is not a publication of new financial metrics. While the disposal could dilute shareholder value, the fact that only three executives are involved means additional information is required to assess overall cost of capital and dilution impact. Going forward, monitoring the operation of this program and any further disclosures is warranted.