Notice of Issuance of New Shares and Share Acquisition Rights by the Fourth Third-Party Allocation under the Share and Share Acquisition Rights Issuance Program

Overview of Fundraising

Stella Pharma Corporation plans, under its share and share acquisition rights issuance program, to issue 1,000,000 ordinary shares to the allottee CVI Investments, Inc. at a subscription price of 373 yen per share, with an expected total subscription amount of 373,000,000 yen. Concurrently, as the issuance of the 8th series of share acquisition rights, 10,500 units will be allocated at 288 yen each, resulting in 1,050,000 potential shares. The proceeds are planned to be applied to clinical trial expenses related to rare cancers, research and development costs for treatments for deep-seated cancers, and manufacturing and development expenses for overseas expansion.

Shareholder Structure and Dilution

Dilution is expected due to the issuance of shares under this fourth allocation and the potential exercise of share acquisition rights; however, considering the rationale for and intended use of the fundraising, the company states that it will contribute to enhancing corporate value over the medium to long term. The allottee's shareholding ratio will change later depending on variations in the denominator represented by the total number of issued shares.