Source disclosure: February 20, 2026
SHANON Inc. [3976.T]
TOKYO, Feb 20 (Pulse News Wire) – SHANON Inc. (3976.T) resolved today to reduce its capital stock and surplus reserves to address previous losses and improve financial health.
The measures, which require shareholder approval at the annual meeting scheduled for March 30, involve decreasing capital stock from ¥1.084 billion to ¥100 million and reducing surplus reserves entirely. Both reductions will be transferred to additional paid-in capital, which will then be used to offset accumulated deficits. The company's board also decided to allocate the resulting additional paid-in capital of ¥1.714 billion to cover past deficits, aiming to stabilize finances and enhance long-term value.
This move will enable SHANON to qualify for tax benefits applicable to small corporations, potentially lowering future tax burdens and further strengthening its financial position. Key milestones include creditor objection notices on February 26, final objections due on March 25, and the effective date set for March 31. Notably, these actions will not alter total equity or per-share net assets but will help resolve accumulated deficits and prepare for future dividend distributions.
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