Notice of Issuance of the 5th Series Stock Acquisition Rights (with Exercise Price Adjustment Clause) by Third-Party Allotment and Issuance of the 1st Series Unsecured Bonds (Private Placement), and Conclusion of the Stock Acquisition Rights Allotment Agreement

Key Points

This notice reports resolutions to issue stock acquisition rights by third-party allotment and to issue unsecured bonds as part of capital policy. The stock acquisition rights cover 28,000,000 shares and include an exercise price adjustment clause. Funds will be allocated to securing working capital, debt repayment, the architect proposal business, environmental-related businesses, overseas and IT business investments, etc., with the allotment and payment date set for October 14, 2026. The measure aims to strengthen capital policy as part of financial rehabilitation.

Future Financial and Business Outlook

The fundraising is intended to restore the financial base amid negative net assets and liquidity constraints. Exercise of the stock acquisition rights will proceed in stages under commitment clauses, and share dilution is expected to be up to approximately 24.38% (relative to current shares outstanding). The use of proceeds is expected to include debt repayment, studio expansion, investments in environmental-related businesses, and working capital. In the long term, the company plans to reorganize and strengthen its business portfolio through the mid-term plan 'Phoenix'.