Kuramoto Co., Ltd. (JASDAQ:5216) announced that it has entered into a sponsor agreement for a private placement of 15,438,949 shares for gross proceeds of ¥700,000,000 on March 13, 2020. The transaction will include participation from new investor New Century Limited Liability Partnership for 51.01% stake in the company. The company will issue shares through third party allotment method. The transaction has been approved by the board of directors of the company and is subject to the approval of shareholders in an Ordinary General Meeting to be held on March 30, 2020. The company will incur expenses of ¥9,000,000 and will receive net proceeds of ¥691,000,000. Out of the total proceeds, ¥350,000,000 will go towards capital and ¥350,000,000 will go to capital reserve of the company. The transaction is expected to close on April 7, 2020 to April 28, 2020.