JDI secures funding, refocuses strategy with Ichigo alliance
Japan Display (TSE:6740) announced a new capital alliance with Ichigo Trust to strengthen its financial foundation and accelerate its strategic shift towards a diversified business model. The agreement involves several key steps: JDI will issue its 14th Stock Acquisition Rights to Ichigo Trust through a third-party allotment, aiming to raise JPY 96.4 billion, while Ichigo will surrender its 13th stock acquisition rights at zero value. JDI is also transferring intellectual property rights to newly established subsidiaries and then selling the subsidiaries' shares to Ichigo Trust, securing immediate working capital. The proceedings from this sale will be used to repay JDI's JPY 65 billion in loans from Ichigo, reducing its debt burden. While negotiations continue for the sale of JDI's Mobara Fab land and buildings to Ichigo, the company aims to finalize the agreement in late July 2025. All of the transactions, including the transfer of intellectual property rights and the issuance of new warrants, are expected to occur in July 2025. This new influx of capital will boost working capital and fund JDI's expansion into sensors, advanced semiconductor packaging, and R&D.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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