SYLA Technologies Subscribes to CUMICA’s Third-Party Allotment of New Shares

SYLA Technologies Co., Ltd. (NASDAQ: SYT) (“SYLA” or “the Company”), operator of the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, has decided to subscribe to a third-party allotment of new shares to be issued by CUMICA CORPORATION (Head office: Soka City, Saitama; TSE: 8887) (“CUMICA”), as announced by CUMICA on August 7, 2024, in the “Notice Regarding Issuance of New Shares through Third-Party Allotment.” (The payment date is scheduled for August 28, 2024.)


Management Commentary
“We are pleased to announce our decision to underwrite capital increase of approximately 600 million yen for CUMICA CORPORATION (TSE: 8887),” said Chairman, Founder, and CEO Hiroyuki Sugimoto. “This investment will increase SYLA Technologies’ (NASDAQ: SYT) shareholding ratio in CUMICA to 30.58%. Alongside the dispatch of two directors previously announced by CUMICA, we will advance the restructuring of CUMICA’s management. The impact of this decision on SYLA Technologies' current and next fiscal year's earnings forecasts and balance sheet is currently being assessed, and any changes will be promptly disclosed.

I personally believe that both our group and Japan as a whole are undervalued in the stock market, given the fundamentals. Without being swayed by the turbulent market, we remain committed to steady growth, leveraging the experience gained from the 2008 financial crisis and our group’s increased capital strength.”

Details on Subscription of New Shares of CUMICA through Third-Party Allotment
On January 23, 2024, SYLA entered into a capital and business alliance agreement with CUMICA. Through this partnership, both companies aim to leverage each other’s strengths and expertise to complement their respective business models, thereby creating significant business synergies.

CUMICA operates the development and sales of family-type condominiums in Saitama Prefecture. Notably, its condominium brands, BELLE DEMEURE and BELJOUR, are highly acclaimed. Additionally, CUMICA leverages its unique creativity and cost-effective business model to expand its operations, focusing on real estate development and construction as a manufacturing company.

Through this collaboration, SYLA intends to further promote collaboration with CUMICA for condominium development in joint projects.

About CUMICA CUMICA CORPORATION is a company dedicated to manufacturing. Marking its 31st year in the condominium market, CUMICA offers development, construction, and after-sales support, leveraging its extensive expertise in condominium development. CUMICA takes pride in its accumulated construction technology and high-quality standards and has been focused on delivering products that ensure safety, satisfaction, and trust. One of CUMICA’s competitive advantages lies in its self-formed cooperation network, which allows for effective cost control and stringent quality management, enabling the company to provide high-quality services at low costs.

SYLA Technologies Company Contact
Takeshi Fuchiwaki
Director, Chief Growth Officer
[email protected]