M3 Group Joins MEDIROM Mother Labs’ Series A Financing Round at JPY9 Billion (as of December 1, 2024, approximately USD $59,000,000) Pre-Money Valuation

Rhea-AI Summary

MEDIROM Healthcare Technologies (NASDAQ: MRM) has announced that M3, Inc. (TOKYO PRIME: 2413) or its affiliate will participate in the Series A equity financing round of its subsidiary, MEDIROM MOTHER Labs Inc. The financing round is led by NFES Technologies Inc. at a pre-money valuation of JPY9 billion (approximately USD $59,000,000 as of December 1, 2024).

Positive

• Secured Series A financing round at a significant pre-money valuation of JPY9 billion (~$59M)
• Strategic investment from M3 Group, a major healthcare company

Negative

• None.

Insights

Financial Analyst

This strategic investment from M3 Group into MEDIROM MOTHER Labs represents a significant validation of the subsidiary's potential, particularly at a pre-money valuation of JPY9 billion. The participation of M3, a major player in medical information services, alongside lead investor NFES Technologies, suggests strong market confidence in MEDIROM's healthcare technology initiatives. For a company with a current market cap of about $16 million, securing investment at this valuation level for its subsidiary is notably positive. The deal structure implies substantial value creation potential in the MOTHER Labs division, possibly exceeding MEDIROM's current total market capitalization. This funding round could accelerate MOTHER Labs' development and potentially drive significant value appreciation for MEDIROM shareholders.

TOKYO, Dec. 02, 2024 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) (“MEDIROM”) announces that M3, Inc. (TOKYO PRIME: 2413), or an affiliate within the M3 group, is participating in the Series A equity financing round of MEDIROM MOTHER Labs Inc., a subsidiary of MEDIROM. NFES Technologies Inc. is the lead investor of the Series A financing round at a pre-money valuation of JPY9 billion. Additional information is available here: https://medirom.co.jp/en/ir/20240824/6148%09

Forward-Looking Statements Regarding MEDIROM

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about MEDIROM’s possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “should,” “design,” “target,” “aim,” “hope,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “project,” “potential,” “goal,” or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to MEDIROM’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause MEDIROM’s actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond MEDIROM’s control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects MEDIROM’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MEDIROM’s operations, results of operations, growth strategy and liquidity.

More information on these risks and other potential factors that could affect MEDIROM’s business, reputation, results of operations, financial condition, and stock price is included in MEDIROM’s filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” and “Operating and Financial Review and Prospects” sections of MEDIROM’s most recently filed periodic report on Form 20-F and subsequent filings, which are available on the SEC website at www.sec.gov. MEDIROM assumes no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ from those anticipated in these forward-looking statements, even if new information becomes available in the future.

ABOUT M3, Inc.
M3 is a one of a kind venture company that operates a multitude of global services centred around its physician platform such as m3.com.
M3 is the first company incorporated after the year 2000 to be included in the Nikkei 225 Index. Its 330,000+ Japanese and 6,500,000+ global physician member panel serves as a central platform in advancing innovation and reform across healthcare worldwide.

Tokyo Stock Exchange Prime Market (Securities code 2413)
1-11-44 Akasaka Minato-ku, Tokyo 107-0052 JAPAN
Web https://corporate.m3.com/en

ABOUT MEDIROM MOTHER Labs Inc.
A subsidiary of MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM), focuses on the health-tech sector. The company’s core activities include the "Specific Health Guidance Program" offered through the "Lav" health application and development and sales of the 24/7 recharge-free MOTHER Bracelet smart tracker. By leveraging the features of the recharge-free MOTHER Bracelet, MOTHER Labs offers customizable health management solutions across diverse sectors, including caregiving, logistics, manufacturing, etc.

MEDIROM Healthcare Technologies Inc.
NASDAQ Symbol: MRM
Tradepia Odaiba, 2-3-1 Daiba, Minato-ku, Tokyo, Japan
Web https://medirom.co.jp/en
Contact: ir@medirom.co.jp

MEDIROM MOTHER Labs Inc.
Tradepia Odaiba, 2-3-1 Daiba, Minato-ku, Tokyo, Japan

MOTHER Bracelet is the world's first* 24/7 recharge-free smart tracker. It uses innovative technology from a Silicon Valley tech company that allows for power generation based on temperature differences between body and surrounding air. The recharge-free feature eliminates the risk of data loss when a device is taken off for recharge. MOTHER Bracelet records five basic metrics: heart rate, calories burned, body surface temperature, step count, and sleep.
Official Website: https://mother-bracelet.com

FAQ

What is the pre-money valuation of MEDIROM MOTHER Labs' Series A financing round?

MEDIROM MOTHER Labs' Series A financing round has a pre-money valuation of JPY9 billion (approximately USD $59,000,000 as of December 1, 2024).

Who are the investors in MEDIROM's (MRM) Series A financing round?

NFES Technologies Inc. is the lead investor, and M3, Inc. (or an affiliate within the M3 group) is participating in the Series A financing round.

When did MEDIROM (MRM) announce M3 Group's investment in MOTHER Labs?

MEDIROM announced M3 Group's participation in MEDIROM MOTHER Labs' Series A financing round on December 2, 2024.