Shofu Inc. (TSE:7979) announced a private placement of 1,780,000 common shares at an issue price of ¥1,679 per share for gross proceeds of ¥2,988,620,000 on May 14, 2020. The company has signed an agreement with the investor. The transaction will involve participation from existing investor, Mitsui Chemicals, Inc. (TSE:4183).

The company will incur issuance expenses of ¥194,700,000 in the transaction. The company will issue shares through third-party allotment method. Post the closing, the total number of shares issued by the company will increase from 1,800,000 shares to 3,580,000 shares.

Post-closing of the transaction, the stake of Mitsui Chemicals, Inc. (TSE:4183) will increase from 11.17% to 20.01%. The payment date is June 15, 2020.