Gala Incorporated (JASDAQ:4777) announced a private placement of 763,400 shares at the price of ¥262 per share for proceeds of ¥200,010,800 and 11,451 pre-paid warrants at the price of ¥279 per warrants for gross proceeds of ¥3,194,829 for total proceeds of ¥203,205,629 on May 31, 2019. The transaction includes participation from new investor MEGAZONE CLOUD Corp. The company will issue shares through third party allotments. The company will increase capital by ¥100,005,400 and capital reserve by ¥100,005,400. The total outstanding shares of the company is 16,513,800. Investor will acquire 10.36% stake after acquisition of stock and 15.26% stake after exercise of warrants. The shares will be locked for 6 months. The transaction has been approved by the board of directors of the company. The transaction expense is ¥6,000,000 for common stock and ¥2,000,000 for warrants. The transaction is expected to close on June 27, 2019.