Notice Regarding Forfeiture of New Shares Issued by Third-Party Allotment, Completion of Payment for the 1st Series of Stock Acquisition Rights and Cancellation of Major Shareholder Change

Overview of the Matter

This matter reports that payment by the allottee, Pingxiang Business Co., Ltd., for new shares issued by third-party allotment could not be confirmed by the deadline, resulting in forfeiture of the issuance. Accordingly, the anticipated change in major shareholders originally expected to occur will not take place, and Pingxiang Business Co., Ltd. does not qualify as a major shareholder. Meanwhile, payment for the 1st series of stock acquisition rights has been completed, and at present additional fundraising plans are undecided. Funding plans will be reviewed and announced as decisions are made.

Outlook and Impact

Following the forfeiture, a restructuring of the funding plan is expected. Any additional costs related to the forfeiture or changes in the use of funds have not been decided and will be disclosed promptly once determined. The cancellation of the major shareholder change will not alter the current shareholder composition for the time being, but it is possible that the methods and timing of future fundraising may change.