Orichien Kogyo has approved two separate stock-option plans, and the more market-sensitive one comes with a blunt condition: the paid plan for directors, employees and subsidiary directors cannot be exercised unless the stock closes at ¥7,500 or above at least once. That plan covers 540 options, or 54,000 shares, and would dilute existing holders by 2.82% of shares outstanding, or 2.96% on a voting-rights basis, if fully exercised.
The paid options are being issued for cash at ¥1,525 per option, which the company said matches a third-party valuation, with an exercise price of ¥4,765, the June 24 closing price. Once the ¥7,500 hurdle has been met, holders can exercise the options in full between July 13, 2026 and July 12, 2028, subject in most cases to staying in post.
| Plan | Recipients | Potential dilution | Key exercise condition | Exercise window |
|---|---|---|---|---|
| Paid stock options | 5 directors, 5 employees, 2 subsidiary directors | 2.82% of shares outstanding, 2.96% of voting rights | One TSE close at ¥7,500 or above, plus continued service in most cases | Jul 13, 2026 to Jul 12, 2028 |
| Tax-qualified stock options | 157 employees | Up to 6.22% of shares outstanding | Continued service required in most cases; annual exercise-value cap ¥12mn; strike set at the Jul 24 allotment-date close | Jul 25, 2028 to Jun 24, 2036 |
Alongside that, the company also approved a separate tax-qualified stock-option plan for 157 employees. That grant is larger on potential dilution, up to 6.22% of shares outstanding if fully exercised, but structurally different: no upfront payment is required, the exercise price will be set at the July 24 allotment-date close, and the exercise window runs from July 25, 2028 to June 24, 2036. The annual value exercised under that plan cannot exceed ¥12mn.
For shareholders, the immediate point is not to treat either ceiling as instant dilution. The company disclosed separate ceilings, not a combined figure, and both plans depend on future exercise conditions. What matters now is the design choice: a shorter-dated paid plan that only unlocks after a visible share-price hurdle, and a broader employee plan whose final strike is still to be set next month.