Japanese listed company Metaplanet earlier today announced plans to raise up to 9.5 billion yen (approximately US$62 million) through a new share subscription rights offering.
The primary objective of this capital raise is to accelerate Metaplanet’s strategic accumulation of Bitcoin.
According to the company’s notice on X, the majority of the funds generated from this issuance will be dedicated to the purchase of additional Bitcoin to bolster Metaplanet’s corporate treasury holdings.
This decision reflects the company’s commitment to its Bitcoin-focused investment strategy as it seeks to reduce exposure to the depreciating Japanese yen.
Mechanics of the Share Subscription Rights Offering
The share subscription rights, referred to as the “12th Series Stock Acquisition Rights,” will be issued through a third-party allotment to EVO FUND, a Cayman Islands-based entity designated as the scheduled allottee.
The issuance is conditional upon the effectiveness of the necessary registration under Japan’s Financial Instruments and Exchange Act.
Key details of the offering include the allocation date of December 16, 2024, the issuance of 29,000 units (with each unit representing 100 common shares), and an issuance price of 17,806,000 yen in total (or 614 yen per subscription right).
The exercise period for the rights is set from December 17, 2024 to June 16, 2025.
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Dynamically Adjusted Exercise Price Mechanism
The exercise price of the subscription rights will be initially set at 3,288 yen, equivalent to 150% of Metaplanet’s closing share price on the date of issuance.
Thereafter, the exercise price will be adjusted daily, with the adjustment based on 97% of the simple average of the volume-weighted average prices (VWAP) of Metaplanet’s shares during the 13 consecutive trading days preceding each adjustment date.
This dynamic pricing mechanism is designed to enable the scheduled allottee to implement effective hedging strategies and promote the exercise of the subscription rights.
Securing Commitments from Potential Transferees
The agreement between Metaplanet and EVO FUND includes provisions regarding exercise volume limitations and the requirement for the allottee to secure binding commitments from any potential transferees to assume all obligations related to the exercise of the subscription rights.
These measures aim to ensure the successful implementation of Metaplanet’s Bitcoin accumulation strategy and provide the company with the necessary financial resources to execute on its corporate treasury objectives.
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