Toyokumo <4058> resolved at the board meeting held on the 13th to acquire the shares of Project Mode and make it a subsidiary.

Project Mode is engaged in the development and operation of the manual creation and knowledge management SaaS "NotePM." The knowledge management tool market is currently expanding, and as the demand for operational efficiency and information sharing increases, "NotePM" is contributing to solving challenges for many companies and has garnered solid recognition. Project Mode's business model is very similar to the company, and the compatibility with the company's Business is extremely high. By welcoming Project Mode, which has a high growth product and excellent employees, it is believed that this will contribute to enhancing the corporate value of the company group.

The number of acquired shares is 500 shares (number of voting rights: 500), and the acquisition price will not be disclosed due to confidentiality obligations and the other party's intentions. The acquisition price will be determined based on discussions with the Shareholder, referencing the evaluation amount conducted by a third-party organization through due diligence. It is planned that the entire acquisition will be funded with internal funds. The number of shares owned after the transfer will be 500 shares (number of voting rights: 500) (voting rights ownership ratio: 100.0%). The contract execution date is scheduled for December 25, 2024, and the stock transfer execution date is scheduled for January 8, 2025.

No impact on the consolidated financial results for the fiscal year ending December 2024 is expected from this share acquisition.