News Release

Acquisition of Shares of LC Lending by Subsidiary

Nov 20, 2020
J Trust Co., Ltd.

						

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J Trust Co., Ltd. (the “Company”) hereby announces that Prospect Energy Management Co., Ltd. ("PEM"), a consolidated subsidiary of the Company, resolved, at the Board of Directors’ meeting held today, to acquire all the shares of LC Lending, Inc. (“LCL”), of which GLOME Holdings, Inc. (JASDAQ: 8938) holds 100% of issued shares, and concluded a share transfer agreement with GLOME Holdings, Inc. today (the "Share Acquisition").  

1.Reason/background behind the Share Acquisition

The J Trust Group (the “Group”) currently strives to build a business foundation that does not rely solely on the guarantee business for loans handled by financial institutions in Financial Business in Japan. Meanwhile, PEM, which became a subsidiary on November 19, 2020, is a registered operator of Type II Financial Instruments Business, and is considering expanding its investment-related business capitalizing on the existing business. We have resolved to acquire shares of LCL, which has a track record in the crowdfunding business. LCL currently suspends its business, and at the moment, the balance of investments in silent partnership is zero. However, before suspension of the business, transactions were favorable and LCL successfully repaid crowdfunding investors, which gave them a positive impression. As PEM develops its investment-related business in the future, it has a high affinity with LCL’s crowdfunding business and we can expect synergies with PEM and LCL by offering various services taking advantage of the strengths of the Group companies. Therefore, we have determined the Share Acquisition.

2.Overview of the subsidiary

(1)Name Prospect Energy Management Co., Ltd.
(2)Address 1-30-8 Sendagaya, Shibuya-ku, Tokyo
(3)Representative Nobuyoshi Fujisawa, Representative Director
(4)Business Asset management for solar PV generation business
(5)Capital 10,000 thousand yen
Note: At the Extraordinary General Meeting of Shareholders of PEM scheduled for December 1, 2020, PEM will be renamed as Nihon Funding Co., Ltd. effective December 1, 2020 on the premise that a proposal to amend the Articles of Incorporation, including a change in corporate name, will be approved.

3.Subsidiary to be transferred

(1)Name LC Lending, Inc.
(2)Address 1-12-32 Akasaka, Minato-ku, Tokyo
(3)Representative Tetsuo Kondo, Representative Director
(4)Business Crowdfunding business
(5)Capital 99,000 thousand yen
(6)Date of establishment December 1, 2014
(7)Major shareholders and shareholding ratio GLOME Holdings, Inc. 100.00%
(8)Relationship with J Trust Capital relationship N/A
Personal relationship N/A
Business relationship N/A
(9)Financial position and operating results for the last three years (unit: thousand yen)
Fiscal year-end March 31, 2018 March 31, 2019   March 31, 2020
Net assets 65,161 75,519 (1,860,616)
Total assets 12,662,102 7,756,267 4,170,022
Net assets per share (yen) 329,092.93 381,411.87 (9,397,053.94)
Sales 826,102 726,577 406,812
Operating profit 514,739 497,230 234,921
Ordinary profit 476,572 462,433 (1,644,512)
Profit 8,959 10,359 (1,936,136)
Earnings per share (yen) 45,251.57 52,318. 94 (9,787,465.82)
Dividends per share - - -
Note 1: Fractions less than thousand yen are omitted. “Net assets per share” and “Earnings per share” are rounded down to two decimal places. Note 2: Regarding LCL's financial results for the fiscal year ended March 31, 2020, a decrease in assets under management and recording of provision of allowance for doubtful accounts under non-operating expenses due to changes in the estimated sale price of real estate for sale owned by borrower SPC resulted in ordinary loss and loss.

4. Overview of counterparty of the share acquisition (As of end of September 2020)

(1)Name GLOME Holdings, Inc. (JASDAQ: 8938)
(2)Address 1-12-32 Akasaka, Minato-ku, Tokyo
(3)Representative Hitoshi Miyashita, President and Chief Executive Officer
(4)Business Hospital-related business and real estate-related business
(5)Capital 1,199,298,700 yen
(6)Date of establishment July 1, 1992
(7)Major shareholders and shareholding ratio Fusaido K.K. 17.77%
Osamu Kaneko 17.42%
Yaiemuemu K.K. 13.44%
Hiroyuki Yoshioka 4.13%
(8)Relationship with J Trust Capital relationship N/A
Personal relationship N/A
Business relationship Nihon Hoshou Co., Ltd., a consolidated subsidiary of J Trust, provides guarantee for the subject company’s borrowings.
Related party relationship N/A

5.Number of shares to be transferred and status of shareholding before and after the share transfer

LC Lending, Inc.

(1)Number of shares before transfer 0 share
(2)Number of shares to be transferred 198 shares
(3)Transfer price 10,000 yen
(4)Number of shares after transfer 198 shares

6.Schedule of transfer

(1)Date of concluding share transfer agreement November 20, 2020
(2)Date of share transfer December 1, 2020 (planned)

7.Future outlook

Though LCL recorded loss in the fiscal year ended March 31, 2020, it is expected that all receivables and payables will be cleared at the time of the share acquisition and the Group will assume part of the remaining assets of 1,259 thousand yen and liabilities of 150 thousand yen. Thus, an impact of the Share Acquisition on the Company's consolidated financial results for the fiscal year ending December 31, 2020 is deemed insignificant. However, if such disclosure becomes necessary, we will announce it promptly.

-End-

Contact for inquiries

J Trust Co., Ltd. Finance Department