Kodama Chemical Industry Co.,Ltd. (TSE:4222) announced a private placement of 3,906,250 common shares through third party allotment at a price of ¥256 per share for gross proceeds of ¥1,000,000,000 and net proceeds of ¥960,000,000 on March 6, 2020. The transaction will include participation from Endeavour United II Investment Business Limited, a fund managed by Endeavour United Co., Ltd. Post the transaction the investor will hold 49.86% stake in the company. The transaction has been approved by the board of directors of the company and is subject to a special resolution, which will be held in June 2020 at the ordinary general meeting of shareholders. The transaction is also subject to obtaining business rehabilitation plan approved with the consent of the target creditors at the third creditor meeting for the Business Rehabilitation ADR Procedure. The transaction is expected to close on June 30, 2020.