TOKYO, May 21 (Pulse News Wire) – Sekido CO.,LTD. (9878.T) announced today that its board of directors has resolved to propose a capital reduction plan to shareholders at the upcoming annual general meeting scheduled for June 18, 2026.
Under Article 447, Paragraph 1 of the Companies Act, the company plans to decrease its capital stock amount from ¥15.8 million to ¥10 million. Specifically, SEKIDO intends to reduce ¥5.8 million from its current capital stock and reallocate it to additional paid-in capital. Any exercise of outstanding warrants prior to the effective date will result in a corresponding adjustment to the reduced capital stock amount. This reduction will be executed through a non-cash distribution without altering the total number of issued shares. The entire reduction amount will be transferred to additional paid-in capital.
Notably, this transaction involves a reclassification within equity accounts and will not affect the company's net assets, share count, or earnings per share. Key milestones for the proposed capital reduction include the creditor objection notice publication date set for July 1, 2026, and the final deadline for creditors' objections on July 31, 2026. The effective date of the reduction is anticipated to be March 19, 2027, subject to approval at the annual general meeting. In a statement, SEKIDO emphasized that the capital reduction is aimed at enhancing flexibility and agility in future financial and capital policies. It reassures stakeholders that there will be no impact on the company’s net asset value or operations due to this internal accounting adjustment.
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