NEWS

At a meeting of the Board of Directors on September 24, 2019, we resolved to manage information about all our shares digitally by using blockchain technology. At the Extraordinary General Meeting of Shareholders and the Board of Directors' meeting held on October 8, 2011, our company resolved to issue new shares (hereinafter called “New Shares”) by third-party share issuance (hereinafter referred to as "Third-party share issuance”). The payment procedure for the Third-party share issuance has been completed on October 18, 2019.

Our Company has established a communication protocol and a dedicated interface (hereinafter referred to as the “J-STO Platform”) that enables to digitally manage information on stocks, shareholder lists and contracts, which have been managed in analog way before. "J-STO Equity" is a brand name of our company (trademark pending) meaning that we apply blockchain technology to raise funds through issuance of new shares and transfer the name of shareholder registry and other information related to shares.

In "J-STO Equity", the users received the same number of security tokens (It is an electronic voucher recorded on a private blockchain system managed by our Company, hereinafter referred to as " Security Token.”) as the number of the new shares. With the implementation of J-STO Equity, the same number of Security Tokens as the number of the Company's shares held by each shareholder were granted to existing shareholders of the Company. Therefore, shareholders of the Company will be able to view information on the Company's shares at any time on a dedicated interface developed by the Company (My Page of the J-STO platform) via Internet.

Users of the J-STO Platform can buy and sell the Company's shares through the Platform, and the Company's Board of Directors will also be requested to approve the transfer of the Company's shares through the same Platform. The shareholder registry of the Company is managed on blockchain that constitutes the J-STO platform (private blockchain managed by the Company), and if the shares are transferred in accordance with appropriate procedures, those will be implemented on it. The program (smart contract) will automatically change the name in the shareholder registry at the same time.

In the future we will continue to improve the convenience of the use of the J-STO platform together with Security Tokens and will add new functions to them.

Purpose of the Third-Party Share Issuance

The Company plans to use the funds raised through the Third-Party Share Issuance to strengthen its financial base and to develop a network system for the use of security tokens, etc., and also to promote the expansion of the J-STO solution business in the future.