TOKYO, Jun 19 (Pulse News Wire) – Ceres Inc. (3696.T) resolved at its board meeting held on June 19 to enter into a loan agreement with financial covenants.
The funds raised through this agreement will be used to finance the acquisition of shares in SQUIZ Co., Ltd., which was disclosed on April 1, 2026. Under the terms of the agreement, Ceres Inc. will borrow an amount of ¥2 billion from Mitsubishi UFJ Bank. The contract is scheduled to be finalized on July 01, 2026, with the disbursement set for July 1, 2026. The repayment deadline is June 30, 2033, and the interest rate will be based on TIBOR plus a spread.
Notably, the loan will be unsecured and without guarantees. The financial covenants stipulate that Ceres Inc. must maintain its consolidated net assets at least 75% higher than either the total equity value as of December 2025 or the previous fiscal year-end. Additionally, the company must ensure that its operating profit remains above ¥0 at the end of each fiscal year. Furthermore, the goodwill amount recorded in the consolidated balance sheet should not exceed the total equity value.
In conclusion, the impact of this loan agreement on Ceres Inc.’s consolidated performance is expected to be minor.
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