Kozosushi Co., LTD. announced that it expects to receive ¥0.6264 million in funding from Evolution Capital Management, LLC
April 21, 2020
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Kozosushi Co., LTD. (JASDAQ:9973) announced that it has entered into purchase agreement with investor for private placement of 5,800,000 7th stock acquisition rights at an issue price of ¥0.056 per stock acquisition right for gross proceeds ¥324,800 and 5,800,000 8th stock acquisition rights at an issue price of ¥0.052 for gross proceeds of ¥301,600 for aggregate gross proceeds of ¥626,400 on April 22, 2020. The transaction will include participation from returning investor Evo Fund, a fund managed by 'returning investor' Evolution Capital Management, LLC. Each stock acquisition right is exercisable into common share at a price and will receive proceeds of ¥101,324,800 on post exercise of 7th stock acquisition rights and ¥101,301,600 on exercise of 8th stock acquisition rights. The stock acquisition rights are issued through a third party allotment method. The exercise period of stock acquisition rights is from May 15, 2020 to May 14, 2021. The transaction has been approved by the board of directors of the company. The transaction is expected to close on May 14, 2020. The company will pay issue expenses of ¥4,500,000 for attorney fees, ¥2,000,000 for stock acquisition right evaluation costs, and ¥300,000 for investigating the allotted parties post exercise of warrants.
KOZO Holdings Co Ltd, formerly Kozosushi Co Ltd, is a Japan-based company mainly engaged in the retail business, food and beverage business and distribution business. The Company operates in three business segments. The Retail Business segment is divided into retail business and franchise (FC) business. The retail business sells takeaway sushi. The FC business enters into contracts with franchisees based on a franchise system, provides name recognition and credibility through the use of trademarks, and provides guidance on store construction, product manufacturing, product sales and receives royalty income. The Food and Beverage Business segment operates eat-in style restaurants and FC business. The Distribution Business segment is divided into delivery business and food wholesale business. The delivery business sells home delivery of in-house cooked products. The food wholesale business is engaged in wholesale of commercial food ingredients.