TOKYO, May 22 (Pulse News Wire) – Digitalcube Co.ltd. (263A.T) announced today that its board of directors has decided to propose a share issuance through third-party allocation at its annual shareholders' meeting scheduled for June 26.
The proposal seeks shareholder approval for issuing up to 86,000 ordinary shares with a minimum subscription price per share of ¥800. The total capital increase would amount to 34.4 million based on the upper limit of shares and the lower limit of payment amount. The move aims to bolster the company's operational funds and strengthen its financial foundation amid rising costs and unstable international conditions. Over the past two years, DigitalCube has increased its workforce by 36.7% employees, leading to signs of revenue growth and reduced losses.
However, the company remains in a debt-to-equity ratio exceeding 100%, limiting further bank loans. Therefore, raising additional capital through this method is deemed necessary. Proceeds from the share issuance will primarily fund personnel expenses related to developing the company’s services, aiming to maximize the benefits of human resource investment and enhance future profitability. Additionally, strengthening equity will help resolve the debt issue and stabilize the company's finances.
The proposed issuance follows rigorous valuation methods and requires special resolution from shareholders due to potential preferential pricing concerns.
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