Notice Regarding the Handling of Shareholder Intention Confirmation Procedures and Future Response Concerning a Large-Scale Third-Party Allotment

Overview of the Matter

This notice explains the handling of shareholder intention confirmation procedures and future responses regarding a large-scale third-party allotment planned to be submitted to the 17th Annual General Meeting of Shareholders scheduled for October 26, 2026. While the purpose is business expansion and strengthening the financial base through fundraising, a key issue was whether shareholders should be consulted in advance about the appropriateness of procedures when the dilution rate could reach 25% or more at a stage where procedures were not yet finalized. In conclusion, it was determined that validity under Article 432 of the Securities Listing Regulations could not be recognized, and the policy was changed to confirm shareholders' intentions via a recommending resolution. Going forward, appropriate procedures and disclosures will be conducted once specific terms are determined.

Future Response and Risk Management

Future fundraising will be implemented after internal approvals and board resolutions taking into account specific issuance terms, allottee, issuance scale, use of proceeds, and impact on existing shareholders. Based on past cases, recurrence-prevention measures are being considered, including proper prior consultation with the Tokyo Stock Exchange, confirming applicability requirements of regulations when drafting proposals, and strengthening confirmation systems with external experts. At present, specific fundraising terms are undecided, and information that should be disclosed will be published promptly as it arises.