Otsuka Kagu to Raise 3.8 B. Yen in Fresh Capital
Tokyo, Feb. 15 (Jiji Press)--Otsuka Kagu Ltd. <8186> said Friday that it will raise some 3.8 billion yen in fresh capital by issuing new shares to third parties including an investment fund.
The struggling Japanese furniture retailer will sell 13.11 million new shares for 290.11 yen apiece, with payments set for between March 4 and June 30. On the Tokyo Stock Exchange's Jasdaq market for startups on Thursday, the company's shares closed at 460 yen.
Otsuka Kagu will use the proceeds to promote warehouse automation and store reform designed to reinforce e-commerce operations.
The decision by the company to receive an injection of outside capital came as its free cash flow has dropped sharply due to sluggish sales. President Kumiko Otsuka expressed his intention to remain at the helm of the company for the time being.
Otsuka Kagu also said it has reached a basic agreement to form a business tie-up with Japanese electronics retailer Yamada Denki Co. <9831>.
[Copyright The Jiji Press, Ltd.]