Note : This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese original, the original shall prevail.

(Securities Code 7616 TSE PRIME)
August 20, 2024
To whom it may concern,

Company
COLOWIDE Co., Ltd.
Representative Kohei NOJIRI
President & Representative Director
Inquiries
Masaaki YONEMURA
Chief of Corporate Planning Department(TEL +81-45-274-5970)

Notice Concerning Issuance of New Shares and Secondary Offering of Shares

COLOWIDE Co., Ltd. (the “Company”) hereby announces that its Board of Directors has resolved on August 20, 2024
to issue new shares and conduct a secondary offering of its shares as set forth below.

Purpose of Financing
The funds to be raised through this issuance of new shares are intended to realize our growth vision amid the changing
business environment, to achieve sustainable growth and to enhance our corporate value over the medium to long term.
The funds raised this time will be used as M&A standby funds and will be applied to M&A that contributes to theexpansion of our group's business.
In addition, as a side effect of this fundraising, it is expected to increase the Company's equity, thereby creating moreborrowing capacity, which will enhance the Company's mobility and propulsion for future M&A projects.

Note: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purposeof publicly announcing that the Company has resolved matters relating to the issuance of new shares, the secondary offering of its shares and theissuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities
within or outside Japan.
This press release does not constitute an offer of investment in nor solicitation for purchase securities within the United States or elsewhere. The
securities referred to in this press release have not been, and will not, registered under the U.S. Securities Act of 1933 or any relevant securities lawof any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements underthe U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.

1１． Issuance of New Shares by way of Public Offering (the “Primary Offering”)(1)

Class and Number

17,000,000 shares of common share of the Companyof Shares to beOffered(2)

Method ofThe amount to be paid shall be determined on the date of determination of the issue

Determination ofprice, etc. (which shall be a day falling in the period from Wednesday, August 28,

the Amount to be2024 to Tuesday, September 3, 2024) (the “Pricing Date”) pursuant to Article 25 ofPaid

the Rules Concerning Underwriting, etc. of Securities provided by the Japan
Securities Dealers Association (the “JSDA”).

(3)

Amount of Share

The amount of share capital to be increased shall be half of the maximum amount ofCapital and Share

share capital to be increased, as calculated in accordance with the provisions ofCapital Reserve toArticle 14, Paragraph 1 of the Regulation on Corporate Accounting, with any

be Increased

fraction less than one yen resulting from the calculation being rounded up to thenearest yen. The amount of the share capital reserve shall be the amount obtained bysubtracting the amount of share capital to be increased from the maximum amount ofshare capital to be increased.

(4)

Method of Offering

The offering will be a public offering in Japan. All of the new shares shall bepurchased for sale by the underwriting syndicate（the “Underwriters”）.
The issue price (offer price) with regard to the Primary Offering shall be determinedbased on the provisional range calculated by multiplying the closing price in regular
trading of shares of common share of the Company on the Tokyo Stock Exchange on
the Pricing Date (or, if no closing price is quoted, the closing price of theimmediately preceding date) by between 0.90 and 1.00 (amounts of less than 0.5 yen
are rounded down to the nearest 0.5 yen), in accordance with Article 25 of the Rules
Concerning Underwriting, etc. of Securities provided by the JSDA, taking into
market demand and other conditions.

(5)Payment Date

The payment date shall be a day falling in the period from Wednesday, September 4,2024 to Monday, September 9, 2024.
However, if the Pricing Date is Wednesday, August 28, 2024 or Thursday, August29, 2024, it will be Wednesday, September 4, 2024, if the Pricing Date is Friday,
August 30, 2024, it will be Thursday, September 5, 2024, if the Pricing Date isMonday, September 2, 2024, it will be Friday, September 6, 2024, or if the Pricing
Date is Tuesday, September 3, 2024, it will be Monday, September 9, 2024.

(6)

The amount to be paid in, the amount of share capital and share capital reserve to be increased, and anyother matters necessary for the issuance of new shares shall be determined at the discretion of Kohei
Nojiri, President and Representative Director.

(7)

Each item above shall be subject to the effectiveness of the securities registration statement filed under theFinancial Instruments and Exchange Act of Japan (“FIEA”).

Note: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purposeof publicly announcing that the Company has resolved matters relating to the issuance of new shares, the secondary offering of its shares and theissuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities
within or outside Japan.
This press release does not constitute an offer of investment in nor solicitation for purchase securities within the United States or elsewhere. The
securities referred to in this press release have not been, and will not, registered under the U.S. Securities Act of 1933 or any relevant securities lawof any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements underthe U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.

2２．Secondary Offering of Shares of the Company by way of Over Allotment (the “Secondary Offering”)(1)

Class and Number

2,550,000 shares of common share of the Companyof Shares to be Sold

The number of shares set out above is the maximum number of shares which may besold. The above number may be decrease, or the Secondary
Offering may be cancelled in its entirely, depending on market demand and otherconditions. The number of shares to be sold shall be determined on the Pricing Date,taking into account market demand and other conditions.

(2)

Seller

The lead manager(3)

Selling PriceUndetermined. (The selling price shall be determined on the Pricing Date; provided,
however, that such selling price shall be the same as the issue price (offer price) in
the Primary Offering.)(4)

Method ofTaking into account market demand and other conditions for the Primary Offering,

Secondary Offering

the lead manager will undertake a Secondary Offering of shares of common share of
the Company (up to 2,550,000 shares) borrowed from certain shareholder(s) of theCompany.

(5)

Delivery Date

The delivery date shall be the next business day after the payment date in respect ofthe Primary Offering.

(6)

The selling price and any other matters necessary for the Secondary Offering shall be determined at thediscretion of Kohei Nojiri, President and Representative Director.

(7)

Each item above shall be subject to the effectiveness of the securities registration statement filed under theFIEA.

Note: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purposeof publicly announcing that the Company has resolved matters relating to the issuance of new shares, the secondary offering of its shares and theissuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities
within or outside Japan.
This press release does not constitute an offer of investment in nor solicitation for purchase securities within the United States or elsewhere. The
securities referred to in this press release have not been, and will not, registered under the U.S. Securities Act of 1933 or any relevant securities lawof any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements underthe U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.

3３．Issuance of New Shares by way of Third-Party Allotment(1)

Class and Number

2,550,000 shares of common share of the Companyof Shares to beOffered(2)

Method ofThe amount to be paid shall be determined on the Pricing date; provided, however,Determination forthat such amount to be paid shall be the same as the amount to be paid in respect ofthe Amount to bethe Primary Offering.

Paid(3)

Amount of Share

The amount of share capital to be increased shall be half of the maximum amount ofCapital and Share

share capital to be increased, as calculated in accordance with the provisions ofCapital Reserve toArticle 14, Paragraph 1 of the Regulation on Corporate Accounting, with any

be Increased

fraction less than one yen resulting from the calculation being rounded up to thenearest yen. The amount of the share capital reserve shall be the amount obtained bysubtracting the amount of share capital to be increased from the maximum amount ofshare capital to be increased.

(4)

Allottee

The lead manager(5)

Payment Date

Thursday, September 26, 2024

(6)

Shares not subscribed within the subscription period shall not be issued.

(7)

The amount to be paid in, the amount of share capital and share capital reserve to be increased, and anyother matters necessary for the issuance of new shares by way of third-party allotment shall be determinedat the discretion of Kohei Nojiri, President and Representative Director.

(8)

Each item above shall be subject to the effectiveness of the securities registration statement filed under theFIEA.

Use of Proceeds
The entire amount of the total estimated proceeds from the Primary Offering and the third-party allotment, up
to 36,724,354,250 yen, will be used as standby funds for M&A and will be applied to M&A that contributes
to the expansion of our group's business by the end of September, 2026.
At this time, no specific details or amount of M&A have been determined. If any unappropriated amountarises by the end of September 2026, it will be used to repay the borrowings by the end of March 2027.
Until the specific time of appropriation, the funds will be properly managed in a bank account in theCompany's name.
EndNote: This press release does not constitute an investment solicitation for any securities for sale. This press release has been prepared for the purposeof publicly announcing that the Company has resolved matters relating to the issuance of new shares, the secondary offering of its shares and theissuance of new shares by way of third-party allotment, and not for the purpose of soliciting investment or engaging in any other similar activities
within or outside Japan.
This press release does not constitute an offer of investment in nor solicitation for purchase securities within the United States or elsewhere. The
securities referred to in this press release have not been, and will not, registered under the U.S. Securities Act of 1933 or any relevant securities lawof any state. The securities may not be offered or sold in the United States absent registration or an exemption from registration requirements underthe U.S. Securities Act of 1933. No offer of securities for sale in the United States will be made in connection with the above-mentioned transactions.

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