MEDIROM Healthcare Technologies Inc. Announces Exercise and Closing of Over-Allotment Option in Initial Public Offering

Rhea-AI Summary

MEDIROM Healthcare Technologies Inc. (NasdaqCM:MRM) announced the completion of an additional sale of 60,000 ADSs at $15.00 each, following the exercise of an over-allotment option from its initial public offering. The company expects to receive around $837,000 in net proceeds after fees. These funds are earmarked for working capital and corporate purposes, including strategic investments to enhance customer reach and service offerings. Maxim Group LLC acted as the sole bookrunner for this offering.

Positive

• Received approximately $837,000 in net proceeds to support growth initiatives.
• Intends to use funds for strategic investments and expanding customer base.

Negative

• Potential dilution of existing shareholders due to additional ADSs offered.

NEW YORK, Feb. 01, 2021 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (NasdaqCM:MRM), a holistic healthcare company from Japan (the “Company”), announced today that it has completed the sale of an additional 60,000 ADSs (each ADS representing one common share, no par value) at the public offering price of US$15.00 per ADS, pursuant to the exercise by the underwriter of the over-allotment option granted to it in connection with the Company’s initial public offering. The Company expects to receive additional net proceeds of approximately US$837,000, after underwriting discounts and commissions.

The Company intends to use the net proceeds for working capital and general corporate purposes, which may include investments, acquisition or strategic collaborations to expand its customer base as well as develop and market new services.

Maxim Group LLC is the sole bookrunner for the offering.

The ADSs were offered pursuant to the Company's Registration Statement on Form F-1 (File Nos. 333-250762 and 333-251777) previously filed with and subsequently declared effective by the Securities and Exchange Commission ("SEC"). A prospectus relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Electronic copies of the prospectus may be obtained from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at (212) 895-3745.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially 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 since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

About MEDIROM Healthcare Technologies Inc.

MEDIROM operates 290 (as of December 31, 2020) relaxation salons across Japan centered around Re.Ra.Ku™, which aims to provide healthcare services. In 2015, MEDIROM entered the health tech business, and conducted specific health guidance and constitution improvement programs, On-demand training app "Lav™". MEDIROM also entered the device business in 2020 and is developing a smart tracker "MOTHER Tracker™". Currently, MEDIROM is continuing development work with the goal of commercializing the product. In the future, MEDIROM plans to expand the scope of our business to include data analysis based on the lifestyle data we have accumulated since our founding.

URL: https://medirom.co.jp/en

Contacts
Investor Relations Team
ir@medirom.co.jp

Public Relations Team
press@medirom.co.jp

FAQ

What is the recent ADS offering by MEDIROM (MRM)?

MEDIROM completed the sale of an additional 60,000 ADSs at $15.00 each, generating net proceeds of approximately $837,000.

How will MEDIROM use the funds from the ADS offering?

The funds will be used for working capital, strategic investments, and to expand their customer base.

What date did MEDIROM announce the ADS offering?

The announcement was made on February 1, 2021.

Who was the bookrunner for MEDIROM's ADS offering?

Maxim Group LLC served as the sole bookrunner for the offering.

What are the potential risks associated with MEDIROM's ADS offering?

The offering could lead to dilution of existing shares, which may affect current shareholders.