MEDIROM Healthcare Technology‘s Subsidiary, MEDIROM MOTHER Labs, Raises an Aggregate Total of JPY260.3 Million in its Series A Financing Round

Rhea-AI Summary

MEDIROM MOTHER Labs, a subsidiary of MEDIROM Healthcare Technologies (NASDAQ: MRM), has raised JPY260.3 million (approximately $1.7 million) in its ongoing Series A financing round at a pre-money valuation of JPY9 billion ($58.6 million). NFES Technologies leads the investment, joined by M3, Inc., Elematec , and other investors.

The company's flagship product, the MOTHER Bracelet®, has received orders for over 25,000 units through B2B channels between July and October 2024. This innovative fitness tracker generates electricity from body heat, requiring no charging, and monitors fitness levels, sleep patterns, pulse, and body temperature. The company is targeting markets including hospitals, nursing homes, and gyms.

Positive

• Secured JPY260.3 million ($1.7M) in Series A funding
• Pre-money valuation of JPY9 billion ($58.6M), multiple times parent company's market cap
• Received 25,000 unit orders for MOTHER Bracelet® through B2B channel
• Strategic investors include major public companies like M3, Inc. and Elematec

Negative

• None.

Insights

Financial Analyst

The JPY260.3 million Series A funding at a pre-money valuation of JPY9 billion represents a significant milestone for MEDIROM MOTHER Labs. The valuation multiple over the parent company's market cap suggests substantial value creation in the subsidiary. Strategic investments from established companies like M3 Inc and Elematec provide strong validation of the technology. The B2B purchase orders for 25,000 units demonstrate early market traction and potential revenue streams. The innovative self-charging technology could provide a competitive edge in the wearable fitness market, particularly in institutional settings where continuous monitoring is crucial.

Tech Analyst

The MOTHER Bracelet's thermoelectric charging technology represents a significant innovation in the wearable device space. By eliminating the need for traditional charging, it addresses a major pain point in fitness tracker usage. The partnership with Silicon Valley-based Matrix Industries adds credibility to the technical capabilities. The device's comprehensive feature set including fitness tracking, sleep monitoring and vital signs measurement positions it well for healthcare and institutional markets. The substantial B2B order volume suggests strong product-market fit and validates the technology's commercial viability.

• Pre-Money Valuation of JPY9 Billion is Approximately Multiples of Current Parent Company Market Capitalization.
• Strategic Investors Further Validation of Technology and Growth Potential.
• Further Commercialization with Recent 25,000 Unit Order from B2B Sales Channel.
  

TOKYO, Dec. 13, 2024 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) announces that its subsidiary MEDIROM MOTHER Labs Inc. raised to date an aggregate total of 260.3 million yen (approximtaely USD $ [1.7] million calculated at an exchange rate of JPY[153.64] to US$1) at a pre-money equity valuation of JPY9 billion (approximately USD $ [58.6] million calculated at an exchange rate of JPY[153.64] to US$1) in its Series A equity financing. NFES Technologies Inc. is the lead investor in the financing round, and several public companies in Japan, including M3, Inc. (TOKYO PRIME: 2413) and Elematec Corporation (TOKYO PRIME: 2715), as well as certain individual investors are also participating. The Series A equity financing round is still ongoing. MEDIROM MOTHER Labs has closed financings with six investors to date and intends to conclude the financing round by December 31, 2024.

“We are very excited that our MEDIROM MOTHER Labs subsidiary has received such significant validation from strategic partners as our lead investor NFES Technologies Inc. as well as M3,Inc and Elematec Corporation. The pre money valuation of 9 billion yen is approximately multiples of MEDIROM’s current NASDAQ listing market capitalization which I believe further validates our technology, business model and growth potential.” said Kouji.

The MOTHER Bracelet^® is currently in commercialization. From July 1, 2024 through October 31, 2024, MEDIROM MOTHER Labs received purchase orders for an aggregate of over 25,000 units from its B2B sales channel. “We believe the MOTHER Bracelet^® to be the world’s first fitness tracker that requires no electric charging by utilizing an innovative technology that enables the user’s body heat to generate electricity. We co-developed it with Matrix Industries, based in Silicon Valley and believe its features are cutting-edge technology with rich features and ease of use to track fitness levels, sleep patterns, pulse and body temperature We will continue to target markets such as hospitals, nursing homes and gyms, where such data is vital,” said Yoshio Uekusa, CEO of MEDIROM MOTHER Labs.

ABOUT MEDIROM MOTHER Labs Inc.
A subsidiary of MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) (“MEDIROM”), MEDIROM Mother Labs Inc. 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, and similar industries.

Forward-Looking Statements Regarding MEDIROM and MOTHER Labs

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. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this press release include:

• MEDIROM’s ability to achieve its development goals for its business and execute and evolve its growth strategies, priorities and initiatives;
• MEDIROM Mother Labs’s ability to close its Series A equity financing on the anticipated timeline or at all;
• MEDIROM’s ability to collaborate in the anticipated manner;
• changes in Japanese and global economic conditions and financial markets, including their effects on MEDIROM’s expansion in Japan and certain overseas markets;
• MEDIROM’s ability to increase sales of the MOTHER Bracelet and achieve and sustain profitability in its Digital Preventative Healthcare Segment;
• the fluctuation of foreign exchange rates, which affects MEDIROM’s expenses and liabilities payable in foreign currencies;
• MEDIROM’s ability to maintain and enhance the value of its brands and to enforce and maintain its trademarks and protect its other intellectual property;
• MEDIROM’s ability to raise additional capital on acceptable terms or at all;
• MEDIROM’s level of indebtedness and potential restrictions on MEDIROM under MEDIROM’s debt instruments;
• changes in consumer preferences and MEDIROM’s competitive environment;
• MEDIROM’s ability to respond to natural disasters, such as earthquakes and tsunamis, and to global pandemics, such as COVID-19; and
• the regulatory environment in which MEDIROM operates.

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.

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

For more information visit: https://mother-bracelet.com

FAQ

How much funding did MEDIROM MOTHER Labs raise in its Series A round?

MEDIROM MOTHER Labs raised JPY260.3 million (approximately $1.7 million) in its Series A financing round at a pre-money valuation of JPY9 billion.

What is the pre-money valuation of MEDIROM MOTHER Labs (MRM) in December 2024?

MEDIROM MOTHER Labs' pre-money valuation is JPY9 billion (approximately $58.6 million), which is multiple times the parent company's current NASDAQ market capitalization.

How many MOTHER Bracelet® units were ordered between July and October 2024?

MEDIROM MOTHER Labs received purchase orders for over 25,000 units of the MOTHER Bracelet® through its B2B sales channel from July 1 to October 31, 2024.

What are the key features of MEDIROM's MOTHER Bracelet®?

The MOTHER Bracelet® is a fitness tracker that generates electricity from body heat requiring no charging, and tracks fitness levels, sleep patterns, pulse, and body temperature.

Who are the main investors in MEDIROM MOTHER Labs' Series A round?

NFES Technologies Inc. is the lead investor, with participation from public companies including M3, Inc. and Elematec , along with individual investors.