Announcement • Apr 14
CAVE Interactive CO.,LTD. announced that it expects to receive ¥96.425 million in funding CAVE Interactive CO.,LTD. announced a private placement of 145,000 common shares at a price of ¥665 per share for gross proceeds of ¥96,425,000 on April 13, 2026. The transaction will include participation from the chairperson of the board of directors, Natsuko Yoshinari. The stake of the investor will increase from 16.43% to 18.21% through this transaction. The transaction has been approved by the board of directors of the company. The company will issue shares by way of third party allotment. The transaction is expected to close on April 30, 2026. The company will pay ¥487,400 as expenses including preparation of securities notification of ¥50,000, legal fees of ¥100,000, and registration fees of ¥337,000, bringing the net proceeds to ¥95,937,600. Reported Earnings • Apr 14
Third quarter 2026 earnings released: JP¥49.79 loss per share (vs JP¥97.74 profit in 3Q 2025) Third quarter 2026 results: JP¥49.79 loss per share (down from JP¥97.74 profit in 3Q 2025). Revenue: JP¥3.15b (down 17% from 3Q 2025). Net loss: JP¥300.0m (down 151% from profit in 3Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. New Risk • Apr 14
New major risk - Revenue and earnings growth Earnings have declined by 8.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.7% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥3.95b market cap, or US$24.8m). 
