Notice Regarding Request by Shareholders to Convene an Extraordinary General Meeting of Shareholders

GungHo Online Entertainment, Inc. has received a formal request from shareholders to convene an extraordinary general meeting to address a specific proposal regarding corporate governance and capital allocation. The requesting parties, identified as Intertrust Trustees (Cayman) Limited acting as trustee for Japan-UP and Strategic Capital, Inc., submitted the demand on October 15, 2026. These entities have met the legal threshold for such a request by maintaining continuous ownership of at least 3% of the company’s total voting rights for a period exceeding six months.

The primary agenda item proposed by the shareholders involves the acquisition of treasury shares from specific shareholders. This request, filed under Article 297 of the Companies Act, signals an active effort by these institutional investors to influence the company’s capital structure or share distribution policies. While the specific motivations behind the request are contained within the attached appendix of the filing, the core objective is to force a formal deliberation on share buyback mechanisms involving targeted parties.

GungHo Online Entertainment, which is listed on the Tokyo Stock Exchange Prime Market, has acknowledged the receipt of the request and is currently in the process of evaluating the proposal. The company has committed to reviewing the legal and financial implications of the agenda items before determining its official response policy. No definitive timeline for the meeting or the company’s final stance has been established, as management continues to assess the implications of this shareholder-led initiative on the firm’s broader strategic objectives.