Avex to issue restricted stock to a subsidiary director

Avex Inc. (TSE:7860) resolved on November 27, 2025, to issue 5,200 shares of common stock as restricted stock compensation, with a pay-in date of December 18, 2025. This resolution follows a prior decision on June 27, 2025, which was clarified due to one allottee forfeiting their right. The current issuance ensures the delivery of restricted stock after all conditions were met by the allottee. The total issue value for these shares is JPY 6,255,600, with an issue price of JPY 1,203 per share, based on the closing price on November 26, 2025.

The shares will be allotted to one director of a subsidiary. This initiative aims to enhance the motivation of executives and subsidiary directors toward improving mid- and long-term corporate value and to align their interests more closely with those of shareholders. The restricted stock compensation plan, introduced in the 38th fiscal year, involves a three-year transfer restriction period from December 18, 2025, to December 17, 2028. During this period, allottees are prohibited from transferring, pledging, or otherwise disposing of the shares.

The company retains the right to acquire the shares without compensation under specific conditions, such as the allottee's resignation before the restriction period expires without justifiable reasons. Transfer restrictions will be lifted at the end of the period, provided allottees continuously hold their positions at Avex or its subsidiaries. In the event of organizational restructuring, restrictions may be lifted earlier, subject to board or shareholder approval.