Terra Drone Corporation's board decided on August 26, 2026 to split its common stock two-for-one, doubling the company's issued shares from 10,397,100 to 20,794,200 with a record date of September 30, 2026 and an effective date of October 1, 2026. Authorized shares under the company's articles of incorporation will rise in step, from 32,600,000 to 65,200,000, through an amendment to Article 6 that takes effect the same day. Capital stock itself is unchanged.
The stated goal is arithmetic rather than strategic: lower the price of a standard trading unit so more investors can afford to buy in, and widen the shareholder base. Terra Drone's own filing does the math for readers. Based on the August 26 closing price of ¥17,050, a post-split trading unit will cost roughly ¥850,000.
| Metric | Before split | After split |
|---|---|---|
| Issued shares | 10,397,100 | 20,794,200 |
| Authorized shares | 32,600,000 | 65,200,000 |
| Approximate investment unit (100 shares, based on Aug 26 close) | ¥1,705,000 implied by ¥17,050 close (not stated in filing) | about ¥850,000 |
| Typical warrant share allotment | 100 shares | 200 shares |
That number is the real tension in the filing. The company explicitly acknowledges the Tokyo Stock Exchange's guidance that a "desirable investment unit" sits under ¥500,000, and says it deliberately kept the split ratio at two-for-one, rather than going further, to avoid an abrupt shift in trading conditions for existing holders. In other words, Tokyo Growth-market investors get a cheaper entry ticket, just not the cheap one the exchange itself recommends.
The split forces a knock-on adjustment across Terra Drone's stack of outstanding stock acquisition rights, the warrants it uses to raise capital and compensate service providers. Exercise prices on more than two dozen warrant series, ranging from the No. 2 paid warrants (cut from ¥100 to ¥50 per share) up to warrants exercisable at ¥30,000 (cut to ¥15,000), will be halved from October 1, while the number of shares each warrant delivers doubles from 100 to 200. Three of those series, the No. 20 through No. 22 warrants, carry price-adjustment clauses tied to Terra Drone's July 6, 2026 capital raise; their floor exercise prices are also being halved, from ¥7,500-¥15,000 down to ¥3,750-¥7,500, giving the board room to reprice them lower if needed.
Terra Drone describes itself as scaling its drone-solutions and unmanned traffic management businesses while pushing into newer areas including defense-related work, and frames the split as supporting that growth agenda. The company flags one loose end: the exact post-split share counts are based on shares outstanding as of July 31, 2026, and could still shift if warrant holders exercise before the September 30 record date.