Tokai RIKA TOKYO LISTED TOKAI RIKA TO SELL SHARES AS PART OF EMPLOYEE STOCK PLAN

TOKYO, Jul 30 (Pulse News Wire) – Tokai Rika CO.,LTD. (6995.NG) announced that its board of directors approved the sale of treasury shares on July 30, 2026 as part of its employee stock compensation program.

The company plans to sell up to 1,300,000 ordinary shares at a price of ¥3,345 per share, resulting in a total disposal amount of ¥4.348 billion. The shares will be sold through Mitsubishi UFJ Trust and Banking Corporation (trust account) to Nippon Custodian Bank Co., Ltd. (trust account). This transaction is aimed at implementing the existing trust arrangement set up for the employee stock plan.

The dilution impact is estimated to be 1.46% based on the number of outstanding shares as of March 31, 2026, which equates to 1.52% of the total voting rights as of the same date. The company believes this level of dilution is reasonable and unlikely to significantly affect the trading market. In addition, the disposal price was determined based on the closing price of July 29, 2026, the day before the board's decision, ensuring objectivity and reasonableness in valuation. The trust agreement was established on August 20, 2024, and will continue until August 2034.

Details of the employee stock plan can be found in the notice dated May 14, 2024.