Genext cancels private placement after allottee misses payment on 388,300 shares

The allotment, announced Sept. 15, 2026, called for new shares to be issued to ASK space design Co., Ltd., ADON and Fuji Capital LLP, and stock acquisition rights to three parties including SEVEN STAR SYSTEM Co., Ltd. and ASK space design.

ADON had told Genext it would fund the payment with ¥120 million borrowed from Universal Solution Co., Ltd., whose representative is an acquaintance of ADON's representative director. Genext said it had reviewed the Aug. 28, 2026 loan agreement between the two companies, which set principal of ¥120 million, annual interest of 3% and lump-sum repayment on Aug. 17, 2031.

According to ADON, a difference in understanding with the lender over the loan's preconditions emerged after Sept. 15, and the loan was not expected to be executed. ADON said it explored other funding sources but could not secure the money by the payment date.

When Genext informed the other prospective allottees that ADON's portion was likely to lapse, they raised concerns about proceeding with the allotment as originally planned. After those discussions, the company decided to cancel the entire allotment. Genext said there is no change to its plan to pursue the business strategy set out in the Sept. 15 announcement.

The company plans to withdraw on Oct. 2, 2026 the securities registration statement it filed with the Director-General of the Kanto Local Finance Bureau on Sept. 15. It said it will consider how to raise the funds needed and make a separate announcement.