Notice Concerning Borrowing of Funds
SMS Co., Ltd. (“SMS”) hereby gives notice of its resolution of the Board of Directors on October 7, 2015 to borrow funds.
１．Reasons for the Borrowing
As announced in the press release “Acquisition of the Shares of Medica Asia (Holdco) Limited ” today (October 7, 2015), SMS resolved at the Board of Directors to execute a Share Purchase Agreement for acquiring shares of Medica Asia (Holdco) Limited and subscribe to a capital increase through third-party allotment of shares of Medica Asia. For this reason, SMS will borrow the funds from a financial institution.
２．Detail of the Borrowing
| （１） Lender | Sumitomo Mitsui Banking Corporation |
| （２） Loan Amount | 19 billion Japanese Yen |
| （３） Borrowing Date | October 7, 2015 |
| （４） Loan Period | One Year |
| （５） Loan Type | Unsecured / non-guaranteed |
３．Future outlook
We expect the impact that this transaction may have on the results of operations of SMS to be minimal. As for future finance, SMS will consider appropriate finance methods by taking into account the Group’s business plan and demand of funds.
Notice Concerning Borrowing of Funds