Notice Regarding Issuance of New Shares Through Overseas Offering

Overview

ACSL has decided to issue new shares through an overseas offering, increasing total outstanding shares from 19,572,474 to 24,372,474. BofA Securities will act as underwriter and lead manager, with the offering conducted mainly in overseas markets including North America and Europe. The issue consists of 4,800,000 shares, with an additional underwrite/over-allotment option of up to 1,000,000 shares. The issue price will be determined by the determination date, with a provisional range of 0.90 to 1.00 times the closing price. Payment date is September 8, delivery date September 9.

Use of funds and impact

Primary use of funds includes expansion investments in the defense sector (approximately 4,812 million yen) and overseas investment for North American expansion (approximately 2,000 million yen). This aims to strengthen the financial base and expand in overseas markets. Compared with prior equity financings, the potential number of new shares is expected to account for about 7.4% of the total. Lock-up periods and stabilizing actions are set with limited scope, and the impact on shareholders is expected to be dilution associated with long-term business expansion.