On May 2, 2024, Nagahori Corporation announced in its press release that it had received a shareholder proposal from Re Generation Inc, for its 63rd Ordinary General Meeting of Shareholders. The shareholder proposal is as follows, i) Appropriation of Surplus: Re Generation states that it can not accept the fact that the return of profits to shareholders is disregarded because of the company?s enormous losses caused by the management?s failures, inadequate internal controls and the outflow of funds for large advisory fees for self-preservation. The company stated that it will disclose its opinion on the shareholder proposal after a careful consideration of the same.

However, the company believes that the allegations made by the shareholder are contrary to the facts. The advisory expenses were in response to Re Generation purchasing a large number of the company?s shares without disclosing sufficient information and filing a lawsuit to revoke the resolution of general shareholders meeting. The company was compelled to make these payments in response to these actions, and the expenses were not all for self-protection of the current management team.