We hereby announce that our Board of Directors, at a meeting held today, resolved to acquire J-KISS type stock acquisition rights issued by Palett Co., Ltd. (hereinafter, "Palett").
1. Reason for Investment
Palett operates with the mission of "creating a new standard for early childhood education where every child can shine." Based on personalized early childhood education, the company develops and offers the personalized early childhood education kit "Crown Box" and the early childhood education-focused babysitting service "Crown Sitter," establishing a unique position in the early childhood education sector.
We decided to invest in Palett by acquiring its stock acquisition rights, as we resonate with its mission and highly evaluate its future business prospects.
2. Overview of Investment
This investment involves the acquisition of J-KISS type stock acquisition rights.
| (1) Name of Stock Acquisition Rights | 1st J-KISS Type Stock Acquisition Rights |
| (2) Amount of Payment |
20 million yen |
| (3) Payment Date |
August 25, 2023 (scheduled) |
(Note) J-KISS type stock acquisition rights are paid-in convertible stock acquisition rights with a price adjustment mechanism, where the number of shares to be acquired by investors is not determined at the time of investment. After receiving investment through the issuance of these stock acquisition rights, when the company raises funds through a share issuance in a Series A funding round as its business enters a growth phase, investors holding these stock acquisition rights will acquire shares at a certain discounted price.
3. Overview of Investee
| (1) Name | Palett Co., Ltd. |
| (2) Location |
Mori Building 702, 2-14-5 Kojima, Taito-ku, Tokyo |
| (3) Title and Name of Representative | Masaki Nakamura, Representative Director |
| (4) Business Activities | Early Childhood Education Support Business |
| (5) Capital | 92,521,150 yen |
| (6) Date of Establishment | September 4, 2018 |
| (7) Relationship between the Listed Company and the Investee | There are no applicable capital, personnel, or business relationships. |
4. Impact on Financial Results
The impact of this matter on the financial results for the fiscal year ending January 2024 is minor. Should any material facts arise in the future, we will promptly disclose them.