Giken Kogyo Co., Ltd. (TSE:9764) announced a private placement of 1,000,000 common shares at ¥150 per share and 10,000 warrants for gross proceeds of ¥150,000,000 on December 25, 2015. The transaction will include participation from existing investor, Freesia Macross Corporation (TSE:6343) and its affiliates. The warrants will carry an exercise price of ¥200 per share and will be exercisable into 10,000,000 common shares.

As part of the transaction, the investor will increase its stake from 25.84% to 30.04%. On the exercise of warrants, the investor will hold 55.35% stake in the company. The company will issue the securities via third party allotment method.

The transaction was approved by the board of directors of the company. The transaction is further subject to approval from the shareholders at the extraordinary shareholders' meeting.