Our Views on the Stock Split Announced on May 29, 2026, and a Series of Recent Capital and Management Policies

MTM Capital Co., Ltd. (hereinafter "our company") has consistently aimed to improve the corporate value and maximize shareholder value of Chiiki Shimbun Co., Ltd. (hereinafter "the Company") as a shareholder. Our company's original stance has been to respect the autonomous management decisions of the Company's management. If the Company's stock price were to rise, dividends were paid, and rational management and corporate activities were conducted with consideration for the stock price, we believed there would be nothing specific to say to the Company.

However, we believe that the current state of corporate governance under the Company's present management, the risks of conflicts of interest, and the effectiveness of corporate activities aimed at improving shareholder value, including the recent trend in performance and stock price, are situations that warrant careful examination.

Furthermore, based on the "Measures Against Large-Scale Acquisition Activities" introduced in 2022, the Company's current management designated our company as a "joint concerted actor" on January 15, 2026. In the course of this process, the Company sent us seven sets of questionnaires, to which we responded sincerely each time. On the other hand, there have been almost no substantive responses to the public questionnaires that we have repeatedly sent, and we cannot help but harbor concerns about this unbalanced approach to two-way dialogue and the purpose of the subsequent measures taken.

We cannot overlook the current situation where the interests of existing shareholders are not adequately protected, and from our position as a shareholder, we hereby announce our views on the following series of measures. Detailed materials regarding these views and the history of our dialogue can be found on the following website (URL: https://savechiiki.com/news/).

1. Regarding the Stock Split

Questions about the Purpose of the Stock Split: Regarding the measure to split one common share into 1.8 shares, we believe that its rationality requires careful consideration from the perspective of improving liquidity and expanding the investor base, which are the general purposes of a stock split, given that its primary purpose appears to be to understand the holdings of specific shareholders. Impact on Shareholders: We believe that sufficient consideration and explanation should be provided to all shareholders regarding the lack of clear objective grounds for the assumptions related to margin trading buy orders, and the potential for fractional shares arising from this split to impose liquidity constraints and procedural burdens on shareholders.

2. Regarding the Termination of the Basic Agreement for Business Integration with UniGrowth

Questions about the Effectiveness of the Platform Concept: The termination of this integration, which was positioned as the first project of the Company's "Regional Co-creation Platform" concept, has resulted in a need for careful examination not only of the integration process itself but also of the effectiveness of the concept itself and its future feasibility. Consistency of Organizational and Personnel Structure: We believe that a sufficient explanation to shareholders is necessary regarding the circumstances where, upon the termination of the basic agreement for business integration with UniGrowth, the organizational structure, including executive personnel, was established in advance without sufficient assessment of the feasibility of the integration. New Business Promotion System: Regarding the advancement into paid job placement services by a subsidiary, announced simultaneously with the termination of the integration, we recognize that careful explanation should be sought regarding the Company's ability to carry out this business with its own management resources, given its current high dependence on external operators, and the rationality of its business strategy.

3. Regarding the Suspension of Exercise of the 11th Stock Acquisition Rights (MS Warrants)

Consistency of Judgment at Issuance and Suspension: The reasons cited for the suspension of exercise of the 11th stock acquisition rights include current supply and demand, stock price trends, and avoidance of dilution. However, these were foreseeable events at the time of the resolution to issue them, and we believe that sufficient explanation regarding the appropriateness of the issuance itself or its design has not been provided. Continuation of Structural Concerns: We are concerned that even if a temporary suspension of exercise is implemented, the fundamental structural concerns regarding supply and demand and factors hindering stock price appreciation will not be resolved as long as the structure of exercisable prices that can be revised downward exists.

Our company will continue to engage in efforts to improve the corporate value and normalize corporate governance based on our legitimate rights as a shareholder.

1 Our Views on the Stock Split Announced on May 29, 2026, and a Series of Recent Capital and Management Policies https://savechiiki.com/news/press-release-20260702-1/

2 Response to Questionnaire (7) https://savechiiki.com/news/press-release-20260702-2/