Nomura launched transactions in unlisted stock

Nomura Securities has completed its first solicitation and sale of unlisted company stocks using its stock system for specified investors, which, in addition to qualified institutional investors and listed companies, includes individuals who meet certain criteria such as financial literacy and financial asset size.

Transactions were executed on Gojo & Company and Elephantech stock.

Through this initiative, Nomura was able to expand the means of raising funds for unlisted companies to grow their businesses, and provide specified investors with the opportunity to invest in unlisted companies with promising growth potential.

Going forward, Nomura will continue to support the growth of unlisted companies in line with their strategy of “expanding and strengthening the private sector in addition to the public sector,’’ and provide their clients with valuable investment opportunities in private assets.

Features and risks of the stock system for specified investors (J-Ships)

If the securities fall under the category of securities for specified investors due to private placement to specified investors or sales solicitation to specified investors, there may be restrictions on the subsequent transfer method (for example, transfer to general investors may be restricted).

The stocks traded under this system are not listed on an exchange . For this reason, it has the following characteristics:

• Unlike listed companies, many issuer companies do not publish securities reports
• This also includes companies such as listed companies that have not undergone an accounting audit by a certified public accountant or auditing firm
• Issues traded under this system are not traded on exchanges, but only over-the-counter at securities companies
• Issues traded under this system often do not have reference trading prices such as market prices, and prices may fluctuate significantly

The amount invested may be reduced to zero due to the bankruptcy of the company in which the investment has been made.

Method of providing information and handling of transactions regarding stocks traded under this system:

• Information published regarding stocks that can be traded under this system is limited to basic information such as stock name and location of head office. However, detailed company information can be confirmed through the “specified securities information” provided or announced to investors prior to investment solicitation related to private placement to specified investors, solicitation of sales to specified investors, etc.
• If investors decide to hold securities using this system, “issuer information” that allows to check company information and financial statements will be provided or announced every business year.
• At the start of trading, general risk explanations and confirmation documents are requested for each category of securities, and when soliciting investment, explanations are given for each individual stock about the expected customers and the risks and important matters related to that stock.

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