KANAMOTO : Nov 20, 2018Press Release Notice Concerning Determination of Issue Price, Disposition Price and Selling Price and Other Matters relating to Issuance of New Shares, Disposition of Treasury Shares and Secondary Offering of Shares

Notice Concerning Determination of Issue Price, Disposition Price and Selling Price and Other Matters relating to Issuance of New Shares, Disposition of

Treasury Shares and Secondary Offering of Shares

November 20, 2018

Company name Kanamoto Co., Ltd.

Listings

Securities code
Representative	Tetsuo Kanamoto, President and CEO
Contact	Nobuhito Utatsu, Director & Senior Executive Corporate Officer, Division
Manager, Accounting Division and General Manager, Public Relations Office
Telephone	[phone]

The First Section of the Tokyo Stock Exchange; Sapporo Stock Exchange 9678 URLhttps://www.kanamoto.co.jp/en/

Kanamoto Co., Ltd. (the "Company") has determined the issue price, the disposition price, the selling price and other matters relating to the issuance of new shares, the disposition of treasury shares and the secondary offering of shares of the Company, which were resolved at the meeting of the Board of Directors held on November 12, 2018, as set forth below:

1.

Issuance of New Shares by way of Public Offering in Japan
(1)	Issue Price (offer price)	¥3,288 per share
(2)	Total Amount of the	¥7,398,000,000
Issue Price
(3)	Amount to be Paid	¥3,152.40 per share
(4)	Total Amount to be Paid	¥7,092,900,000
(5)	¥3,546,450,000
¥3,546,450,000
(6)	Wednesday, November 28, 2018

Amount of Stated Capital and Additional Paid-in Capital to be Increased

The amount of stated capital to be increased

The amount of the additional paid-in capital to be increasedPayment Date

Note: The Underwriters shall purchase for sale the shares at the amount to be paid and offer them at the issue price (offer price).

Note: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purpose of publicly announcing that the Company has resolved matters relating to the issuance of new shares, disposal of treasury shares, the secondary offering of its shares and the issuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan.This press release does not constitute an offer of investment in nor solicitation for purchase of its shares of common stock within the United States or elsewhere.

The Company has not, and will not, registered any of its shares of common stock under the U.S. Securities Act of 1933 or any relevant securities law of any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements under the U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.

• 2. Disposition of Treasury Shares by way of Public Offering in Japan

  • (1) Disposition Price (offer price)

  • (2) Total Amount of the Disposition Price

  • (3) Amount to be Paid

  • (4) Total Amount to be Paid

    ¥3,288 per share ¥2,466,000,000 ¥3,152.40 per share ¥2,364,300,000

  • (5) Payment Date

    Wednesday, November 28, 2018

    Note: The Underwriters shall purchase for sale the shares at the amount to be paid and offer them at the disposition price (offer price).

• 3. Secondary Offering of Shares of the Company by way of Over Allotment

  • (1) Number of Shares to be Sold

  • (2) Selling Price

  • (3) Total Amount of the Selling Price

    450,000 shares ¥3,288 per share ¥1,479,600,000

  • (4) Delivery Date

    Thursday, November 29, 2018

• 4. Issuance of New Shares by way of Third-Party Allotment

  • (1) Amount to be Paid

  • (2) Total Amount to be Paid

• (3) Amount of Stated Capital and Additional Paid-in Capital to be IncreasedThe amount of stated capital to be increased

  ¥3,152.40 per share (Maximum) ¥1,418,580,000 (Maximum) ¥709,290,000

  The amount of the additional paid-in capital to be increased

  (Maximum) ¥709,290,000

• (4) Payment Date

Wednesday, December 19, 2018

Note: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purpose of publicly announcing that the Company has resolved matters relating to the issuance of new shares, disposal of treasury shares, the secondary offering of its shares and the issuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan.This press release does not constitute an offer of investment in nor solicitation for purchase of its shares of common stock within the United States or elsewhere.

The Company has not, and will not, registered any of its shares of common stock under the U.S. Securities Act of 1933 or any relevant securities law of any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements under the U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.

1. Calculation of Issue Price (offer price), Disposition Price (offer price) and Selling Price

• (1) Price Calculation Date and Price

  Tuesday, November 20, 2018

• (2) Discount Rate

¥3,390 3.01%

• 2. Number of New Shares to be Offered by way of Public Offering 2,250,000 shares of common stock of the Company

  Of the above shares offered, 518,900 shares will be sold to foreign investors in foreign markets primarily in Europe and Asia (excluding the United States and Canada).

• 3. Syndicate Cover Transaction Period

  From Friday, November 23, 2018 to Wednesday, December 12, 2018

• 4. Use of Proceeds

  The proceeds from the offerings, which are estimated to be a maximum of 10,825,280,000 yen, are to be used, in the fiscal year ending October 2019, the fiscal year ending October 2020 and the fiscal year ending October 2021, for part of the repayment of debt including the Company's installment obligations related to the acquisition of rental equipment through installment payment transactions etc. during the fiscal year ending October 2019. Until used as set forth above, the Company intends to invest the unused portion of the net proceeds in investment-grade debt or other similar instruments.

  See the notice entitled "Notice Concerning Issuance of New Shares, Disposition of Treasury Shares and Secondary Offering of Shares" on November 12, 2018 for more details.

- End -

Note: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purpose of publicly announcing that the Company has resolved matters relating to the issuance of new shares, disposal of treasury shares, the secondary offering of its shares and the issuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan.This press release does not constitute an offer of investment in nor solicitation for purchase of its shares of common stock within the United States or elsewhere.

The Company has not, and will not, registered any of its shares of common stock under the U.S. Securities Act of 1933 or any relevant securities law of any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements under the U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.