Notice Regarding the Completion of Purchase of Treasury Shares

Akatsuki Inc. has finalized the acquisition of 2,390,000 treasury shares, representing 16.5% of its total issued shares excluding existing treasury holdings. Executed on May 14, 2026, via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading system, the transaction involved a total expenditure of 6,481,680,000 yen. This purchase concludes the authorization granted by the Board of Directors on May 13, 2026, which had set an upper limit of 2,600,000 shares and a maximum cost of 7,051,200,000 yen.

The primary objective behind this capital allocation is to enhance capital efficiency and facilitate flexible financial management in response to evolving market conditions. Beyond general corporate strategy, the acquisition serves a specific structural purpose related to the company’s expansion plans. A portion of these newly acquired treasury shares is earmarked for allotment and delivery to shareholders as part of a planned share exchange involving SUNNY SIDE UP GROUP Inc.

Following the completion of a tender offer and subsequent squeeze-out procedures, Akatsuki Inc. intends to integrate SUNNY SIDE UP GROUP Inc. as a wholly owned subsidiary. The treasury shares acquired through this process will function as the consideration for this share exchange, ensuring the company maintains the necessary equity reserves to execute its corporate consolidation strategy. This move reflects a broader effort to optimize the company's capital structure while simultaneously supporting its inorganic growth objectives within the Japanese market.