Nousouken Corporation (TSE:3541) announced a private placement of 755,700 shares at a price of ¥741 per share for gross proceeds of ¥559,973,700 by third party allotment on October 14, 2020. The transaction included participation from East Japan Railway Company (TSE:9020), Fukuoka Sonoriku, K.K. for 134,900 shares each, and Agriculture, forestry and fisheries Fund cooperation for Innovation, Value-chain and Expansion Japan for 485,900 shares. The transaction was approved by board of directors of the company.

Out of the total proceeds, ¥279,986,850 will go towards the capital and the remaining towards capital reserve. The company will incur expenses of ¥20,000,000 in the transaction and will receive net proceeds of ¥539,973,700. Post closing of the transaction, Fukuoka Sonoriku, K.K. will hold 0.62% stake in the company.

Prior to the transaction, Agriculture, forestry and fisheries Fund corporation for Innovation, Value-chain and Expansion Japan holds 2.23% stake in the company. The transaction is expected to close on November 4, 2020.