CommSeed Corporation (NSE:3739) announced a private placement for gross proceeds of ¥101,667,500 on May 25, 2015. The company will issue 137,500 shares at ¥726 per share for gross proceeds of 99,825,000 and 275 series 4 warrants at ¥6,700 per warrant for gross proceeds of ¥1,842,500. The warrants are pre-paid.

The transaction will involve participation from returning investors, Cykan Company Ltd for shares and Milestone Capital Management Co., Ltd for warrants. Cykan Company Ltd and Milestone Capital Management Co., Ltd. will hold 53.08% stake and 5.03% stake in the company on closing of the transaction. The payment date for the transaction is June 11, 2015.

Each warrant is exercisable to acquire 1,000 shares of the company and company can acquire each share at an exercise piece of ¥726. The transaction has been approved by the board of directors of the company. The company will incur ¥1,500,000 for warrants valuation costs ¥1,100,000 for registration-related costs, and ¥717,500 for stock administration commissions and external research costs.