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Leftovers

JDI to Close Ichigo Funding Again
February 10, 2020

Japan Display has received lifelines from Apple as it extended the repayment terms it required for the return of capital that was to be applied to panel purchases and was used for fab construction, JDI has most recently been in discussions with Ichigo Trust an investor in real estate and clean energy, which seem to be progressing.  At the next board and shareholder meetings, the company is hoping to amend the Articles of Incorporation to increase the number of common shares from 3.38b to 10b and to issue preferred shares to Ichigo for $463m, which will move Ichigo to the top of the shareholder list, replacing the INCJ, who was responsible for creating JDI and has been financing the company for years. While the deal will not close until the approval of the shareholders, expected in late March, it does not seem to be contingent on the findings that a former employee embezzled $5.3m from the company, with an independent investigation causing a postponement of the release of 3Q results.  If the deal closes, Ichigo will become the majority shareholder of JDI and Ichigo’s CEO will become JDI’s Chairman.  So far little has been said as to Apple’s involvement in the management change and financing, although in the previous deal they were said to be contributing between $100m and $200m.