Medleyinc to merge with subsidiary, anticipates extraordinary loss

Medleyinc, a company specializing in medical healthcare internet services, will undergo an absorption-type merger with its wholly owned subsidiary, ASFON TRUST NETWORK Inc. (ATN), with Medleyinc as the surviving entity. The merger, approved by Medleyinc's board of directors on October 27, 2025, is scheduled to take effect on April 1, 2026. This strategic consolidation aims to further leverage existing synergies and drive accelerated growth within the Medleyinc group.

The merger is expected to result in an extraordinary loss for Medleyinc due to the extinguishment of tie-in shares. While the exact amount has not yet been determined, this loss will be recorded in Medleyinc's non-consolidated financial statements. However, the company states that this loss will be eliminated in the consolidated financial statements, ensuring no impact on consolidated profit and loss. No new shares or other financial allotments will be made as part of this merger.

Post-merger, Medleyinc's corporate details, including its name, headquarters, representative directors, business activities, capital, and accounting period, will remain unchanged. ATN, primarily engaged in referring prospective residents to nursing care facilities, recorded net sales of 836 million yen and a net loss of 83 million yen for the fiscal year ended October 2024.