Fringe81 Co, Ltd. (TSE:6550) announced a private placement of 3,800 class A preferred stock at issue price of ¥1,000,000 per share for the gross proceeds of ¥3,800,000,000 on May 19, 2021. The transaction will include participation from existing investor, Sansan, Inc. (TSE:4443) for 1,900 shares for the gross proceeds of ¥1,900,000,000 and Development Bank of Japan Inc., Investment Arm for 1,900 shares for the gross proceeds of ¥1,900,000,000 through third-party allotment. Post the transaction, Sansan, Inc. (TSE:4443) and Development Bank of Japan Inc., Investment Arm will hold 50% stake each in the company.

Chidake Kurosaki of Akasaka International Accounting Co., Ltd., will evaluate Class A preferred stock in consideration of the conditions stipulated in the issuance requirements for Class A preferred stock. The company will incur ¥25,000,000 as issuance fees in the transaction. The payment date of the transaction is June 30, 2021.The transaction is been approved by the shareholders of the company.

The transaction is subject to the approval of Ordinary General Meeting of Shareholders scheduled to be held on June 29, 2021.