Mullion Co., Ltd. Announces Preparation for Application to Handle Security Tokens (ST) under Type II Financial Instruments Business License

Mullion Co., Ltd. (Code: 3494, Tokyo Stock Exchange Standard, Fukuoka Stock Exchange Main, Nagoya Stock Exchange Main)

The company announces that it has begun preparations to apply for an amendment to its existing Type II Financial Instruments Business license to enable self-offering of Security Tokens (hereinafter referred to as "ST"), and has decided to file a notification for solicitation activities under the Real Estate Specific Joint Enterprise Law (hereinafter referred to as "JPUA").

1. Background

The company obtained business licenses under Article 2, Paragraph 4, Items 1 and 2 of the JPUA (Tokyo Metropolitan Governor License No. 57) in June 2004, and has since been structuring and selling real estate securitization products through real estate specific joint enterprise contracts.

In April 2019, the company further obtained licenses under Article 2, Paragraph 4, Items 3 and 4 of the JPUA (License No. 100 from the Commissioner of the Financial Services Agency and the Minister of Land, Infrastructure, Transport and Tourism, including electronic transaction business).

Subsequently, amendments to the Financial Instruments and Exchange Act and related laws, effective November 1, 2024, have classified rights based on tokenized real estate specific joint enterprise contracts (hereinafter referred to as "JPUA ST") as securities under the Financial Instruments and Exchange Act. Additionally, solicitation activities related to JPUA ST contracts are now classified as designated solicitation activities under the JPUA.

In light of these regulatory changes, the company is currently considering two approaches for future JPUA ST sales contracts: (1) entrusting securities companies with offering or underwriting, or (2) conducting self-offering. If approach (1) is adopted, no additional licenses or approvals are required. However, if approach (2) is adopted, the company must amend its existing Type II Financial Instruments Business license to include ST self-offering and file a notification for designated solicitation activities under the JPUA.

2. Purpose

Moving forward, the company will advance the development and consideration of JPUA ST products featuring characteristics it specializes in, such as "open-ended with changeable target real estate and CPI-linked distribution rates," and will structure and sell its proprietary real estate ST products.

The company believes that creating and expanding sales of its proprietary JPUA ST products will not only expand its business but also potentially contribute to restructuring its mid-to-long-term revenue base and enhancing corporate value.

Therefore, in order to ensure flexibility in future sales planning, the company has determined it is desirable to begin preparations for the license amendment required for self-offering (approach 2) and for filing the designated solicitation notification under the JPUA, while continuing to evaluate the optimal sales method.

3. Outlook

Progress regarding this application preparation, as well as alliances such as partnerships with securities companies, will be announced through the company's website and other channels.

The company believes this application preparation will contribute to enhancing its mid-to-long-term corporate value.

Should any matters requiring disclosure arise in the future, the company will promptly announce them.

[Company Overview: Mullion Co., Ltd.] Company Name: Mullion Co., Ltd. (https://www.mullion.co.jp/) Head Office: 9-11 Tomioka, Shinjuku-ku, Tokyo 162-0067 Representative: Keiji Fukuda, President and CEO Business: Real estate-related services Capital: ¥1,387,642,720 Established: November 1986

[About Mullion Co., Ltd.]

Mullion Co., Ltd. provides rental and securitization services through real estate, assisting customers in creating comfortable living spaces by owning, managing, and leasing properties.

Additionally, by structuring and offering real estate securitization products in accordance with laws and regulations, the company provides supplementary services that complement public social security systems, contributing with services that customers value for a secure future.

Inquiries regarding this announcement Muto, Executive Director, Head of Management Planning Department Mullion Co., Ltd.

TEL: 03-3226-7841 (Main)