Beat Holdings Limited (TSE:9399) entered into an agreement to acquire CoinOtaku, Inc. from Midas No. 8 Fund managed by Midas Capital Co., Ltd., Akihiko Shimoyama, Yo Masuda Yokohama, Takashi Sekido Machida and Kazushi Kitaya for approximately ¥570 million on July 9, 2020. Under the terms of consideration, Payment will be made in two tranches. In First tranche, the first payment will be made in cash for acquiring 81,830 shares at price of ¥4,734 per share which represents 67.97% stake in CoinOtaku. Beat will acquire 57,792 shares from Midas, 19,222 shares from Akihiko Shimoyama, 3,612 shares from Yo Masuda and 1,204 shares from Kazushi Kitaya. One-third of acquisition price will be paid on July 15, 2020 and then next payment will be made after 30 days of first payment and third payment will be made after 30 days of second payment. In Second tranche, it will acquire 38,570 shares in total from Akihiko Shimoyama and Takashi Sekido and the price paid to Akihiko Shimoyama will be made on whichever is higher that is ¥4,734 per share or the amount obtained by multiplying the average operating profit of company from October to December 2020 by 24 times and the net asset value of company as of the end of December 2020, divided by the total number of issued shares Price per unit price, multiplied by the number of shares acquired above. The payment will be made on January 8, 2021 or the day when both parties agrees. As of July 15, 2020, Beat Holdings acquired 67.97% stake in CoinOtaku and the first payment for the first transfer was completed on July 29, 2020. The second payment will be made on August 30, 2020, third payment will be made on September 30, 2020 and second payment for the first transfer will be made on October 30, 2020. As on January 13, 2021, Beat Holdings Limited said that the payment of second tranche will be done on January 29, 2021 and transaction price will be ¥197 million, with offer price as ¥5125 to Akihiko Shimoyama and and ¥0.59 million with offer price ¥4,734 to Takashi Sekito. Post completion, CoinOtaku, Inc will become wholly owned subsidiary of Beat Holdings Limited. In order to pay the consideration for the acquisition, Beat Holdings will issue new shares by third party allotment and Stock acquisition rights with exercise price modification clause. For Year ended September 31, 2019, CoinOtaku, Inc. had total assets of ¥134.1 million, Net asset of ¥53.9 million, Operating income as ¥100.9 million, sales of ¥175 million and Net income of ¥71.3 million. Japan FA Systems Corp acted as financial advisor and Atlas Accounting Limited acted as Due diligence provider to Beat Holdings Limited in the transaction. Beat Holdings Limited (TSE:9399) completed the acquisition of CoinOtaku, Inc. from Midas No. 8 Fund managed by Midas Capital Co., Ltd., Akihiko Shimoyama, Yo Masuda Yokohama, Takashi Sekido Machida and Kazushi Kitaya on January 29, 2021. Beat Holdings acquired 38,444 shares from Akihiko Shimoyama on January 19, 2021 and remaining 126 shares from Takashi Sekito on January 29, 2021. Payment was done on January 29, 2021. CoinOtaku has become a wholly owned subsidiary of Beat Holdings.