ROYAL HOLDINGS Co., Ltd. (TSE:8179) announced a private placement of 5,820,700 common shares at a price of ¥1,718 per share for gross proceeds of ¥9,999,962,600, stock acquisition rights 41,124 units at a ¥1 per unit for gross proceeds ¥41,124, 3,000 class A preferred stock at a price of ¥1,000,000 per preferred A stock for gross proceeds of ¥3,000,000,000, and 3,000 class B preferred stock at a price of ¥1,000,000 per preferred b stock for gross proceeds of 3,000,000,000, for aggregate gross proceeds of ¥16,000,003,724 on February 15, 2021. The transaction will involve participation from Sojitz Corporation (TSE:2768) for common stock and stock acquisition rights, Mizuho Bank, Ltd., Investment Arm for 1,500 class A preferred stock and 1,500 Class B preferred stock, Development Bank of Japan Inc., Investment Arm for 900 class A preferred stock and 900 Class B preferred stock, The Bank of Fukuoka, Ltd. and Nishi-Nippon Financial Holdings, Inc. (TSE:7189) for 300 class A preferred stock and 300 class B preferred stock each. The transaction will take place through third party allotment.

The stock acquisition rights can be exercised into 4,112,400 shares. Half the amount raised through respective securities, will go towards the capital reserve and the balance half will go towards the capital increase. The stock acquisition rights can be exercised from April 1, 2021 to March 31, 2021.

The transaction is expected to close on March 31, 2021.