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• We would like to express our sincere gratitude for your continued support.
  Our company is advancing commercialization with the goal of obtaining manufacturing and marketing approval for allogeneic chondrocyte sheets (CLS2901C) by 2030. On September 20, 2023, we submitted a clinical trial notification for a Phase 3 trial of allogeneic chondrocyte sheets to the PMDA. Following review by the Institutional Review Board (IRB), we entered into agreements with each clinical trial site and established the necessary framework to perform surgeries at those facilities. On October 9, 2025, the first patient was enrolled, and the Phase 3 trial is progressing as planned. While we do not intend to issue IR announcements for individual patient enrollments, we plan to disclose the progress of the trial at appropriate times through platforms such as jRCT.

In our Q3 financial results announced on November 13, we reported that sales in the cell cultureware business declined during the current fiscal period, primarily due to rapid changes in the research environment in the United States and ongoing geopolitical instability in regions such as Europe and the Middle East. As a result, we revised our earnings forecast for the fiscal year ending December 2025. Moving forward, we will strengthen initiatives to expand sales of cultureware products both domestically and internationally, while focusing on ensuring the successful launch of UpCell® flasks, which are in high demand overseas.

To ensure the stable advancement of these businesses, at the Board of Directors meeting held on November 20, 2025, we resolved to issue the 25th series of stock acquisition rights through a third-party allotment to Barclays Bank PLC as the planned allottee, and to enter into a third-party allotment agreement with Barclays Bank after the effectiveness of the registration statement under the Financial Instruments and Exchange Act.
The funds raised through this issuance will be allocated to (i) clinical trial costs for the development of allogeneic chondrocyte sheets, (ii) operating expenses for cell processing center to manufacture cell sheets, (iii) operating expenses for development and manufacturing facilities for cultureware products, and (iv) working capital. By steadily advancing the commercialization of our existing pipeline and accelerating the realization of regenerative medicine products such as cell sheets, we aim to establish a stable business foundation and enhance corporate value over the medium to long term. We believe this policy will serve the interests of our existing shareholders.

We remain committed to the rapid realization and commercialization of regenerative medicine, and we kindly ask for your continued and unwavering support.