For immediate release

Name of Listed Company:

Gurunavi, Inc.

Listed Stock Exchanges:

Tokyo Stock Exchange

Stock Code:

2440

Representative:

Akio Sugihara, President

Notice regarding Financing through Equity Subordinated Loan

August 3, 2022 ̶ The board of directors of Gurunavi, Inc. (the "Company") todayresolved to carry out financing through an equity subordinated loan agreement ("Equity Subordinated Loan") as detailed below:

1. Purpose of financing through Equity Subordinated Loan

In order to realize recovery from the COVID-19 pandemic and return the company to growth, the Company raised 3.3 billion yen through the issuance of common stock on October 4, 2021, and 1.7 billion yen through the issuance of Class A preferred stock on December 10, 2021, securing capital funds and working capital for business promotion.

In the business environment surrounding the Company, while consumers' spending on eating out is on a recovery trend, there are signs of severity and uncertainty in the management of restaurants due to rising raw material prices and utility costs, human resource shortages, etc. Under such a business environment, the Company believes it is important to further enhance its working capital and strengthen its financial base and has therefore resolved to carry out financing through Equity Subordinated Loan from The Shoko Chukin Bank, Ltd.

An equity subordinated loan can be regarded as equity under certain conditions for the purpose of asset assessment of financial institutions and thus it delivers a substantial recapitalization without dilution of shares.

2. Overview of Equity Subordinated Loan

(1)

Lender

The Shoko Chukin Bank, Ltd.

(2)

Amount

2.2 billion yen

(3)

Date of borrowing

August 22, 2022

(planned)

(4)

Repayment date

August 20, 2028

(Lump-sum payment on repayment date)

(5)

Collateral and guarantees

Unsecured and unguaranteed

3. Outlook

The impact of this financing on the Company's business performance in the current period is insignificant.

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Gurunavi Inc. published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 06:21:03 UTC.