Notice of Completion of Payment for the 4th Third-Party Allotment of New Shares and Stock Acquisition Rights under the Share and Stock Acquisition Rights Issuance Program Agreement

Overview of Capital Policy Implementation

Stella Pharma Corporation will issue 1,000,000 new shares to CVI Investments, Inc., an investment vehicle managed by a U.S. institutional investor, as the 4th third-party allotment at 373 yen per share, raising a total of 373,000,000 yen. Concurrently, the company will issue 10,500 stock acquisition rights, bringing the total potential shares to 1,050,000 shares. The issuance price of the stock acquisition rights is 288 yen per right, the exercise price is 567 yen, and the exercise period is from November 5, 2026 to November 4, 2030. The allottee is CVI Investments, Inc.

Impact on Shareholders and Future Outlook

Through this third-party allotment and issuance of stock acquisition rights, the company aims to strengthen its capital base for the future. While the increase in issued shares and expansion of potential shares may result in dilution, the impact on investors could be limited depending on the purposes of the fundraising and the planned use of proceeds. The allottee is expected to be engaged in a long-term relationship, and this capital policy is intended to enhance the company’s market fundraising capability. Attention will be focused on future procedural developments and the progress of exercise activity.