Recomm Co., Ltd. (JASDAQ:3323) announced a private placement of 3,350,000 common shares at a price of ¥148.5 per share for gross proceeds of ¥497,475,000, 40 2nd unsecured convertible bond type bond with warrants at a price of ¥25,000,000 per bond for gross proceeds of ¥1,000,000,000, and 22,500 19th series warrants at a price of ¥108 per warrant for gross proceeds of ¥2,430,000, for aggregate gross proceeds of ¥1,499,905,000 on May 13, 2019. The transaction will include participation from returning investors FTGroup Co., Ltd. (JASDAQ:2763) for common shares worth ¥297,000,000, and Macquarie Bank Limited for common shares worth ¥200,475,000 and convertible bonds worth ¥1,000,000,000 and 19th series warrants worth ¥2,430,000. The bonds will be bearing no interest, will be redeemed on June 3, 2021., and can be converted into a minimum of 5,291,005 common shares and a maximum of 9,259,259 common shares from a period between June 5, 2019 to June 4, 2021.

Each 19th series warrant can be exercised into 100 common shares of the company at a price equivalent to 115% of the volume-weighted average price of regular trading of the company's common stock on the Tokyo Stock Exchange on three consecutive trading days prior to the condition determination from June 5, 2019 to June 4, 2021. Upon exercise of the 19th series warrants, the company will receive total amount of ¥425,250,000. As part of the transaction, FTGroup Co., Ltd. (JASDAQ:2763) will acquire 2.80% stake in the company.

The company is raising money through third-party allotment method. The company will pay ¥2,000,000 evaluation fee for stock acquisition rights, ¥20,000,000 for stock administrative fee and change registration expense, and ¥8,000,000 for lawyer expenses. The transaction has been approved by the board of directors of the company and FTGroup Co., Ltd. (JASDAQ:2763).

The payment date is June 4, 2019.