Stella Pharma Corporation announced a private placement of common shares and preferred shares A for gross proceeds of ¥3,600,000,000 on March 24, 2016. The transaction will include participation from new investors, Sumitomo Heavy Industries, Ltd. for 2,000 common shares at¥50,000 per share for gross proceeds of ¥100,000,000; of which ¥50,000,000 will be added in capital and ¥50,000,000 will be added in capital reserve and Innovation Network Corporation of Japan for 70,000 preferred shares A at ¥50,000 per share for gross proceeds of ¥3,500,000,000; of which ¥1,750,000,000 will be added in capital and ¥1,750,000,000 will be added in capital reserve. As part of the transaction, Innovation Network Corporation of Japan will acquire 35% stake and Sumitomo Heavy Industries, Ltd. will acquire 1% stake in the company.

The transaction will take place by third party allotment. The settlement date for the transaction is March 25, 2016.