#Japan #Tokyo #Convano #FASTNAIL #stock consolidation

Convano Announces Share Consolidation for Enhanced Stability

Convano Inc., headquartered in Shibuya, Tokyo, has announced a significant corporate decision to consolidate its ordinary shares on a 10-for-1 basis. This share consolidation proposal is set to be discussed during their board meeting on August 24, 2026, and if approved at the extraordinary general meeting of shareholders scheduled for September 30, 2026, the consolidation will take effect on November 1, 2026.

Reasons Behind the Consolidation

The recent decision to consolidate its shares is strategically aimed at adjusting the investment unit to a more appropriate level following two rounds of stock splits conducted in July and August 2025. These splits were implemented to create a more conducive investment environment for individual investors, expanding the investor base while improving liquidity.

After the two splits, the total number of shares increased 100-fold, significantly lowering the investment unit. This adjustment successfully made the shares accessible to individual investors, as evidenced by the dramatic increase in average trading volume—from about ¥159.47 million to approximately ¥962.28 million—indicating a broader investor engagement. However, the change also led to a peculiar situation where the stock price hovered around 100 yen, making even a 1 yen fluctuation represent a significant percentage of the share price—approximately 1%. Thus, the volatility impacted the intended “efficient and stable formation” of the stock price.

Adjusting the Investment Unit

Based on Convano’s price of 100 yen per share as of August 21, 2026, the current investment unit stands at 10,000 yen for 100 shares. With the proposed consolidation, the theoretical price post-consolidation changes to 1,000 yen per share, leading to a new investment unit of around 100,000 yen.

This adjustment aligns with surveys conducted by the Tokyo Stock Exchange, which indicated that 26.2% of individual investors prefer an investment unit of approximately 100,000 yen, thereby bringing Convano’s investment unit to a more favorable standard. Moreover, the anticipated stock price of 1,000 yen would significantly reduce the impact of minor fluctuations on the overall percentage of share price movements, from approximately 1% to about 0.1%.

Share Consolidation Impact on Shareholders

It’s crucial to clarify that while the consolidation will reduce the number of shares owned by shareholders to one-tenth, the overall asset value per share will theoretically increase tenfold, resulting in no actual asset value loss for existing shareholders. The consolidation is primarily an administrative adjustment without financial implications affecting the company's capital.

Supporting Minor Shareholders

The share consolidation is expected to result in a number of shareholders falling into the category of holding fractional shares. Based on the shareholder list as of March 31, 2026, around 9,373 shareholders—around 58.57% of the total—might hold fractional shares after the consolidation.

To mitigate the potential impact of this shift and protect shareholder rights, Convano plans to implement a new system for fractional shares that will allow these stakeholders to purchase additional shares to reach a full unit (100 shares), alongside the existing buyback proposal for fractional shares.

Consideration for Minority Shareholders

Given that NT Corporation holds 61.56% of the voting rights as of March 31, 2026, the board carefully evaluated the implications of the share consolidation on minority shareholders. While some shareholders will experience a decrease in their voting rights due to the consolidation, the impact on overall voting rights in relation to the total issued shares is expected to be minimal, at less than 1%.

Summary of the Share Consolidation

• - Type of Shares: Ordinary Shares
• - Consolidation Ratio: 10 shares for every 1 share
• - Effective Date: November 1, 2026
• - Total Shares Before Consolidation: 509,156,000 shares
• - Total Shares After Consolidation: 50,915,600 shares (theoretical)
• - Unit Shares: 100 shares (no change)

Convano confirms its commitment to remain listed on the Tokyo Stock Exchange Growth Market after the consolidation, ensuring no effect on its listing status.

Future Schedule

• - August 24, 2026: Board Meeting for Consolidation Approval
• - September 30, 2026: Extraordinary General Meeting of Shareholders
• - October 12-31, 2026: Period for Minority Shareholders to Request Share Buybacks
• - November 1, 2026: Effective Date of Share Consolidation
• - December 2026: Notifications and payments for fractional share disposals

Convano Inc. remains dedicated to its mission of creating new values and expanding opportunities through AI, digital transformation, and consulting services, including the operation of its nail service chain, FASTNAIL. For more information, visit their corporate website at Convano.