SYLA Technologies Announces Notice of Subscription to CUMICA CORPORATION’s Third-Party Allotment of New Shares
SYLA Technologies Co., (NASDAQ: SYT) has announced its decision to subscribe to a third-party allotment of shares in CUMICA The subscription involves 1,470,500 shares of CUMICA's common stock at 408 yen per share, totaling 599,964,000 yen. This move is part of a capital and business alliance agreement between SYLA and CUMICA, aiming to create synergies in real estate development.
The collaboration focuses on exploring new product concepts like Combined Residence and Senior Tech Mansion. SYLA's stake in CUMICA will increase from 20.98% to 30.63% after the subscription. The companies are already working on joint condominium development projects in Omiya and Kawasaki.
SYLA Technologies Co., (NASDAQ: SYT) ha annunciato la sua decisione di sottoscrivere un'assegnazione di azioni da terzi in CUMICA. La sottoscrizione prevede 1.470.500 azioni del capitale comune di CUMICA a 408 yen per azione, per un totale di 599.964.000 yen. Questa mossa fa parte di un accordo di alleanza strategica e commerciale tra SYLA e CUMICA, con l'obiettivo di creare sinergie nello sviluppo immobiliare.
La collaborazione si concentra sull'esplorazione di nuovi concetti di prodotto come il Combined Residence e il Senior Tech Mansion. La quota di SYLA in CUMICA aumenterà dal 20,98% al 30,63% dopo la sottoscrizione. Le aziende stanno già lavorando a progetti di sviluppo congiunto di condomini a Omiya e Kawasaki.
SYLA Technologies Co., (NASDAQ: SYT) ha anunciado su decisión de suscribirse a una asignación de acciones de terceros en CUMICA. La suscripción implica 1.470.500 acciones del capital común de CUMICA a 408 yenes por acción, totalizando 599.964.000 yenes. Este movimiento es parte de un acuerdo de alianza capital y comercial entre SYLA y CUMICA, con el objetivo de crear sinergias en el desarrollo inmobiliario.
La colaboración se centra en explorar nuevos conceptos de productos como el Combined Residence y el Senior Tech Mansion. La participación de SYLA en CUMICA aumentará del 20,98% al 30,63% después de la suscripción. Las empresas ya están trabajando en proyectos de desarrollo conjunto de condominios en Omiya y Kawasaki.
SYLA Technologies Co., (NASDAQ: SYT)는 CUMICA의 제3자 배정 주식에 대한 투자 결정을 발표했습니다. 이번 구독은 1,470,500 주의 CUMICA 보통주를 1주당 408엔에 인수하며, 총 599,964,000엔에 달합니다. 이 움직임은 SYLA와 CUMICA 간의 자본 및 사업 제휴 협약의 일환으로, 부동산 개발에서의 시너지를 창출하는 것을 목표로 하고 있습니다.
협업은 Combined Residence와 Senior Tech Mansion과 같은 새로운 제품 개념을 탐색하는 데 중점을 두고 있습니다. SYLA의 CUMICA에 대한 지분은 구독 이후 20.98%에서 30.63%으로 증가할 것입니다. 두 회사는 이미 오미야와 가와사키에서 공동 아파트 개발 프로젝트를 진행 중입니다.
SYLA Technologies Co., (NASDAQ: SYT) a annoncé sa décision de souscrire à une allocation d'actions de tiers dans CUMICA. La souscription concerne 1.470.500 actions des actions ordinaires de CUMICA à 408 yens par action, soit un total de 599.964.000 yens. Ce mouvement s'inscrit dans le cadre d'un accord d'alliance capital et commerciale entre SYLA et CUMICA, visant à créer des synergies dans le développement immobilier.
La collaboration se concentre sur l'exploration de nouveaux concepts de produits comme le Combined Residence et le Senior Tech Mansion. La part de SYLA dans CUMICA passera de 20,98% à 30,63% après la souscription. Les entreprises travaillent déjà sur des projets de développement de condominiums conjoints à Omiya et Kawasaki.
SYLA Technologies Co., (NASDAQ: SYT) hat seine Entscheidung bekannt gegeben, eine Zuteilung von Drittanteilen an CUMICA zu zeichnen. Die Zeichnung umfasst 1.470.500 Aktien der Stammaktien von CUMICA zu 408 Yen pro Aktie, insgesamt 599.964.000 Yen. Dieser Schritt ist Teil einer Kapital- und Geschäftsallianzvereinbarung zwischen SYLA und CUMICA, die darauf abzielt, Synergien in der Immobilienentwicklung zu schaffen.
Die Zusammenarbeit konzentriert sich auf die Erschaffung neuer Produktkonzepte wie Combined Residence und Senior Tech Mansion. Der Anteil von SYLA an CUMICA wird nach der Zeichnung von 20,98% auf 30,63% steigen. Die Unternehmen arbeiten bereits an gemeinsamen Wohnungsbauprojekten in Omiya und Kawasaki.
- SYLA's stake in CUMICA will increase from 20.98% to 30.63%, strengthening its position
- The alliance aims to create synergies in real estate development, potentially boosting future revenues
- Joint projects in Omiya and Kawasaki are already underway, indicating immediate collaboration
- The subscription requires a significant capital outlay of 599,964,000 yen
- The effectiveness of the subscription is subject to regulatory approval, which introduces uncertainty
Insights
This news is mildly positive for SYLA Technologies. The company is increasing its stake in CUMICA from
However, the impact on SYLA's financials is likely in the short term. The investment represents a relatively small portion of SYLA's assets and immediate returns may be modest. The long-term value will depend on how effectively the companies leverage their synergies in joint projects like the Combined Residence and Senior Tech Mansion concepts.
Investors should monitor the progress of joint developments in Omiya and Kawasaki as indicators of the partnership's success. While this move aligns with SYLA's growth strategy, its true impact on shareholder value will take time to materialize.
The partnership between SYLA and CUMICA is strategically sound, combining SYLA's expertise in investment condominiums in Tokyo with CUMICA's focus on family condominiums in Saitama. This collaboration could yield innovative products that address evolving housing needs, particularly in urban and suburban areas.
The Combined Residence concept, blending family and single-room layouts, is particularly intriguing. It could cater to multi-generational families or provide flexibility for changing household compositions. The Senior Tech Mansion idea also shows foresight, targeting the growing elderly population in Japan.
However, success will depend on market reception and execution. The real estate market in Japan faces challenges like an aging population and changing urban dynamics. SYLA and CUMICA will need to navigate these carefully to ensure their new concepts translate into profitable ventures.
TOKYO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- SYLA Technologies Co., Ltd. (NASDAQ: SYT) (“SYLA” or “the Company”), operator of the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, announced that its Board of Directors has resolved on August 7, 2024, to subscribe to a third-party allotment of shares (the Third-Party Allotment), as announced by CUMICA in the “Notice Regarding Issuance of New Shares through Third-Party Allotment.”
1. Outline of the Third-Party Allotment
| (1) Payment date | August 28, 2024 |
| (2) Number of new shares to be issued | 1,470,500 shares of common stock |
| (3) Issue price | 408 yen per share |
| (4) Amount of financing | 599,964,000 yen |
| (5) Method of offering or allotment (Allottee) | Third-party allotment (SYLA Technologies Co., Ltd.: 1,470,500 shares) |
| (6) Others | Each of the above items shall be subject to the effectiveness of the notification in accordance with the Financial Instruments and Exchange Law. |
2. Purpose and Reason for the Subscription
CUMICA operates in the development and sales of family condominiums, primarily in Saitama Prefecture. Its condominium brands, BELLE DEMEURE and BELJOUR, are particularly noted for their high quality and environmental considerations, showcasing its advanced construction techniques. CUMICA has operated real estate development and construction business while leveraging its unique creativity and cost-effective business model developed through 40 years of condominium development focused on local communities.
On January 23, 2024, SYLA entered into a capital and business alliance agreement with CUMICA. SYLA and CUMICA specialize in the planning, development, and sales of investment condominiums in the Tokyo metropolitan areas and family-type condominiums in the Saitama Prefecture, respectively. The two companies are exploring new, synergistic product concepts, such as Combined Residence (blend of family and single-room layouts within a single building) and Senior Tech Mansion (Nursing care x IoT senior tech condominium).
Through this collaboration, both companies aim to leverage its distinct strengths and expertise, complement each other’s business models, and create significant business synergies in the future. Specifically, the two companies are working on joint condominium development projects in Omiya and Kawasaki.
3. Amount of Subscription
(1) Basis and Specifics of the Calculation of the Amount to be Paid
Since the most recent share price of CUMICA’s common stock is considered an appropriate representation of CUMICA’s shareholder value, the issue price was set at 408 yen, representing the closing price of CUMICA's common stock on the Tokyo Stock Exchange on August 6, 2024, the business day before the board resolution on the Third-Party Allotment dated August 7, 2024.
Regarding the basis for calculating the above issue price, the Company believes it complies with the Japan Securities Dealers Association’s Rules Concerning Handling of Allotment of New Shares to Third Parties and does not constitute a particularly favorable amount as defined in Article 199, Paragraph 3 of the Companies Act.
4. Major Shareholders and Voting Rights Ratio of CUMICA after the Subscription
| Before subscription | After subscription | ||||
| SYLA Technologies Co., Ltd. | 20.98 | % | SYLA Technologies Co., Ltd. | 30.63 | % |
| The Musashino Bank, Ltd. | 2.93 | % | The Musashino Bank, Ltd. | 2.57 | % |
| The Tokyo Higashi Shinkin Bank | 1.89 | % | The Tokyo Higashi Shinkin Bank | 1.66 | % |
| JPMorgan Securities Japan Co., Ltd. | 1.12 | % | JPMorgan Securities Japan Co., Ltd. | 0.98 | % |
| Koeikai Stock Ownership Association | 0.96 | % | Koeikai Stock Ownership Association | 0.84 | % |
| Tadashi Konuma | 0.78 | % | Tadashi Konuma | 0.69 | % |
| Akie Konuma | 0.74 | % | Akie Konuma | 0.65 | % |
| Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | 0.74 | % | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | 0.65 | % |
| Tadao Imai | 0.68 | % | Tadao Imai | 0.59 | % |
| BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTS M LSCB RD | 0.51 | % | BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTS M LSCB RD | 0.45 | % |
(Note) 1. The major shareholder composition (top 10 shareholders) before the Third-Party Allotment is based on CUMICA's shareholder register as of May 31, 2024.
5. Outline of the Issuance
| (1) Type and number of shares to be offered | 1,470,500 shares of CUMICA’s common stock |
| (2) Issue price | 408 yen per share |
| (3) Total amount of issue price | 599,964,600 yen |
| (4) Capital and capital reserve to be increased | Capital: 299,982,000 yen Capital reserve: 299,982,000 yen |
| (5) Application deadline | August 28, 2024 |
| (6) Payment date | August 28, 2024 |
| (7) Method of offering or allotment | Third-party allotment |
| (8) Allottee and number of shares to be allotted | SYLA Technologies Co., Ltd. 1,470,500 shares |
| (9) Others | Each of the above items shall be subject to the effectiveness of the securities registration statement in accordance with the Financial Securities and Exchange Law. |
6. Outline of the Counterparty (as of June 30, 2024)
| (1) Company name | CUMICA CORPORATION | |
| (2) Location | 389-1, Kimmei-cho, Soka City, Saitama, Japan | |
| (3) Title and name of representative | Shinichi Sakamoto, Chief Executive Officer | |
| (4) Business | Real estate and general construction | |
| (5) Capital | 2,000 million yen | |
| (6) Date of Establishment | June 1979 | |
| (7) Major Shareholders and shareholding Ratio (as of May 31, 2024) | SYLA Technologies Co., Ltd. The Musashino Bank, Ltd. The Tokyo Higashi Shinkin Bank JPMorgan Securities Japan Co., Ltd. | |
About SYLA Technologies Co., Ltd.
Headquartered in Tokyo, Japan, SYLA Technologies Co., Ltd. (NASDAQ: SYT) (“SYLA” or “the Company”) owns and operates the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, which targets individuals, corporate and institutional investors, as well as high net worth individuals. SYLA’s mission is to democratize real estate investment around the world through technology and asset management through the Rimawari-kun platform. SYLA is engaged in the overall investment condominium business, including planning, development, construction, sales, rental management, building management, repair work, and the sale of properties. Additional information about the Company’s products and services is available at https://syla-tech.jp/en.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the expected gross proceeds and the closing of the offering. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F, filed with the SEC on May 15, 2024. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
Contact Information
SYLA Technologies Investor Relations Contact:
Gateway Group, Inc.
John Yi and Steven Shinmachi
SYLA@gateway-grp.com
(949) 574-3860
SYLA Technologies Company Contact
Takeshi Fuchiwaki
Director, Chief Growth Officer
irpr@syla.jp
FAQ
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