Lead Real Estate Co., Ltd Announces Voluntary Lock-up Restrictions for Management and Senior Officers

Rhea-AI Summary

Lead Real Estate Co., a Japanese developer of luxury residential properties, announced that its top executives, including CEO Eiji Nagahara, CFO Daisuke Takahashi, and a company director, have entered into voluntary lock-up agreements. These agreements, effective from May 8, 2024, until November 7, 2024, cover approximately 12 million shares, or 90% of the company's outstanding shares. The initiative aims to support long-term growth and maximize shareholder value by providing additional time to implement various strategic initiatives. The company believes this will help bridge the gap between its current market valuation and its intrinsic fair value.

Positive

• Top executives have entered into voluntary lock-up agreements covering 90% of outstanding shares.
• Lock-up agreements provide additional time to implement strategic initiatives.
• Initiative aims to maximize long-term shareholder value.

Negative

• Lock-up agreements limit the liquidity of approximately 12 million shares until November 7, 2024.

New Agreements underscore Company’s commitment to long-term growth strategy and maximizing shareholder value

TOKYO, Japan, June 21, 2024 (GLOBE NEWSWIRE) -- Lead Real Estate Co., Ltd (Nasdaq: LRE) (“LRE” or “the Company”), a Japanese real estate developer of luxury residential properties, including single-family homes and condominiums across Tokyo, Kanagawa prefecture and Sapporo, today announces that on May 8, 2024, Chairman and Chief Executive Officer, Eiji Nagahara, Chief Financial Officer, Daisuke Takahashi, and a director of the Company voluntarily entered into lock-up agreements for the benefit of the Company (the “Lock-up Agreements”). The Lock-up Agreements cover approximately 12 million LRE shares they collectively own, representing about 90% of the outstanding shares of the Company.

The Lock-up Agreements will remain in effect until November 7, 2024.

Chairman and CEO, Eiji Nagahara commented, “This Lock-up Agreements will give the Company additional time to deploy various strategic initiatives aimed at bridging the gap between our current market valuation and what we believe is our intrinsic fair value.”

He further added, “This arrangement demonstrates management’s unwavering commitment to Lead Real Estate’s long-term growth strategy as well as to implementing initiatives aimed at maximizing long-term shareholder value. We are confident that this initiative will prove successful.”

About Lead Real Estate Co., Ltd

Lead Real Estate Co., Ltd is a Japanese developer of luxury residential properties, including single-family homes and condominiums, across Tokyo, Kanagawa prefecture, and Sapporo. In addition, the Company operates hotels in Tokyo and leases apartment building units to individual customers in Japan and Dallas, Texas.

The Company’s mission is to serve its customers by offering stylish, safe, and luxurious living. The Company’s vision is to adopt the Kaizen (continuous improvement) approach to seek to improve its operations, and to leverage its nationally recognized, award-winning luxury homes and strong market position in the luxury residential property market in Tokyo, Kanagawa prefecture, and Sapporo to create a global transaction platform allowing access to prime Japanese condominiums as well as overseas condominiums, including in the U.S. and Hong Kong.

For more information, please visit the Company’s website at https://www.lead-real.co.jp/en/.

Forward-looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information:

For Media and Investor Relations:
Daisuke Takahashi
Chief Financial Officer
Lead Real Estate Co., Ltd
d-takahashi@lead-real.co.jp 
+81 3-5784-5127

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the America’s, 5^th Floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com

FAQ

What is the significance of Lead Real Estate's lock-up agreements announced on June 21, 2024?

The lock-up agreements are significant as they cover approximately 90% of Lead Real Estate's outstanding shares, aiming to support long-term growth and maximize shareholder value.

How many shares are covered under Lead Real Estate's lock-up agreements?

The lock-up agreements cover approximately 12 million shares, representing about 90% of the company's outstanding shares.

What is the duration of Lead Real Estate's lock-up agreements?

The lock-up agreements are effective from May 8, 2024, until November 7, 2024.

What is the objective of Lead Real Estate's lock-up agreements?

The objective is to provide additional time to implement strategic initiatives aimed at bridging the gap between the company's market valuation and its intrinsic fair value.