SCAT Inc. (the “Company”) hereby announces that, it has decided, at a meeting of the Board of Directors held on May 13, 2024, to strengthening capital and business alliance with M.H. Group LTD., and regarding disposal of treasury shares by third-party allotment.
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🔳 Reason for strengthening capital and business alliance.
Our company's corporate philosophy is to "contribute to society by supporting the management of small and medium-sized enterprises using ICT," and by selling POS cash register customer management systems for the hairdressing industry and providing various web content services such as beauty reservation systems, we are We support the management of salons.
M.H. Group LTD.（hereinafter referred to as "MHG"） operates "Mod’s Hair" salons in Japan and overseas, beauty salon management business responsible for operating directly managed salons and developing franchises; hair and makeup business, the origin of "Mod’s Hair", and also provide beauty salon support services that leverage the economies of scale created through these business developments.
The company, MHG, and its wholly owned subsidiary, Right Staff Co., Ltd. （hereinafter referred to as "RS"）, have entered into a business alliance, including a cooperative structure. This will involve collaboration in sales promotion utilizing the sales bases of both companies, joint marketing of solution services for the beauty industry, exchange of opinions on software development, personnel exchange, and support for sustainable environmental management in the beauty industry.
Our group aims to further expand our services for the beauty industry and beauty-related industries.
The Company will strengthen its business alliance with MHG and RS in projects that take advantage of their networks, and will strengthen their capital and business alliance by acquiring additional shares in MHG.
🔳 Details of capital and business alliance
1.Details of business alliance (expansion)
① Considering business expansion by linking the services of both companies' groups.
② Consideration and development of new businesses that utilize various assets held by both companies' groups.
③ Expansion of BtoB payment business and system collaboration between beauty salons and beauty dealers.
④ Initiatives to support sustainable environmental management (SDGs) in the beauty industry
2.Details of capital alliance.
① The Company have agreed that MHG will acquire 65,000 shares of common stock held by the Company through the disposal of treasury stock.
(MHG's ownership percentage is expected to be 2.81%.)
② The company plans to acquire 150,000 new shares issued by MHG.
(The company's ownership percentage is expected to be 2.66%.)
🔳 Disposal of treasury stock through third-party allotment.
① Execution date ： June 6, 2024
② Number of shares to be disposed ： 65,000 shares
④ Disposal price ： 472 yen per share ：
⑤ Amount of funding ： 30,680,000 yen
⑥ Treasury stock disposal method ： Third party allocation method.
⑦ Treasury stock disposal destination ： M.H. Group LTD.
🔳 SCAT's DX strategy.
SCAT provides the systems and content necessary for the hairdressing industry. By using the POS system, smartphone apps, and content services together, you can attract new salon customers and repeat customers. By transforming our sales activities and providing optimal products and services that meet customer needs, we aim to popularize and promote DX in our company and the beauty industry.
This document is a translation of a part of the original Japanese version and provided for reference purposes only.
In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
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Contact for Inquiries：
Sakae Takahashi
Director&Head of Business Management Headquarters
Tel:03-6275-1130
E-mail : ir@scat.inc
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