Natty Swanky Holdings is lining up a two-series warrant issue to Mizuho Securities that could raise ¥673.8mn in total, or an estimated ¥663.8mn net of costs, if both tranches are fully exercised at their initial prices. The maximum new issuance is fixed at 244,000 shares, equal to 9.98% of voting rights, so the dilution ceiling is defined even though exercise prices can reset over time.
| Tranche | Warrants | Potential shares | Initial exercise price | Floor price | Voting-right ratio |
|---|---|---|---|---|---|
| Third series | 1,650 | 165,000 | ¥2,510 | ¥1,910 | 6.75% |
| Fourth series | 790 | 79,000 | ¥3,270 | ¥3,270 | 3.23% |
The third series covers 165,000 shares with an initial exercise price of ¥2,510 and a floor of ¥1,910. The fourth covers 79,000 shares with both an initial price and floor of ¥3,270. From July 7, 2026, exercise prices reset to 92% of the previous trading day’s close, rounded down to the nearest yen, but they cannot fall below those floors, and there is no upper exercise-price cap.
This is not all cash on day one. The warrant issue itself brings in only ¥1.31mn upfront, with the rest arriving only if Mizuho exercises during the two-year window ending July 6, 2028. Natty can also tell Mizuho to pause exercises during designated stop periods from July 8, 2026 to January 6, 2028, and the rights cannot be transferred without board approval.
The company says the money is meant to fund ¥450mn of new company-run store investment, ¥100mn of refurbishments and repairs, and ¥113.8mn of hiring and other opening costs through January 2029. Natty also said cash and deposits at the end of the first quarter of the year ending January 2027 stood at ¥567mn, which it described as insufficient on its own for the growth plan. One fine-print catch, if exercise prices reset lower, or rights go unexercised, the eventual proceeds fall.