Leifras Notice regarding the conclusion of a commitment line agreement totaling 2.5 billion yen to diversify fund-raising channels and strengthen the financial base

Rhea-AI Summary

Leifras (NASDAQ: LFS) concluded a ¥2.5 billion commitment line with multiple banks to diversify funding channels and strengthen its financial base ahead of global expansion. The financing is split into a ¥1.0 billion arrangement signed Oct 31, 2025 with Chikuho Bank (arranger/agent) and a ¥1.5 billion arrangement signed Nov 19, 2025 with Mizuho Bank (arranger/agent).

Both facilities are earmarked for working capital to support expansion of children's sports schools and overseas rollouts.

Positive

• Committed credit lines totaling ¥2.5 billion
• ¥1.0 billion arranged by Chikuho Bank (Oct 31, 2025)
• ¥1.5 billion arranged by Mizuho Bank (Nov 19, 2025)
• Funds designated for working capital to support expansion

Negative

• None.

Key Figures

Total commitment line 2.5 billion yen Aggregate limit under new multi-bank commitment line agreement

Chikuho arrangement 1 billion yen Commitment line arranged by Chikuho Bank signed Oct 31, 2025

Mizuho arrangement 1.5 billion yen Commitment line arranged by Mizuho Bank signed Nov 19, 2025

Stated capital 784,666,480 yen Company capital including capital reserve

Children’s members approximately 70,000 Members in children’s sports school business

Establishment date August 28, 2001 Date Leifras Co., Ltd. was established

Market Reality Check

$3.35 Last Close

Volume Volume 16,928 is well below the 20-day average of 124,680, indicating limited pre-news activity. low

Technical Pre-news price 3.35 was trading below the 200-day MA at 4.10.

Peers on Argus

No peer stocks or sector momentum data were flagged, suggesting the pre-news move in LFS was stock-specific rather than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 18	Nine-month earnings	Positive	-0.8%	Reported revenue and profit growth with full-year 2025 guidance and cash data.
Dec 09	Program outcomes study	Positive	+7.5%	Large-scale Milabo study showed higher non-cognitive skills for camp attendees.
Nov 13	Earnings call notice	Neutral	-18.1%	Announced scheduling and access details for first-half 2025 earnings calls.
Nov 05	Municipal contract win	Positive	-5.2%	Awarded Nagoya contract to manage weekend use of 111 school facilities.
Oct 30	First-half earnings	Positive	+2.5%	Reported double-digit revenue growth, higher margins, and highlighted recent IPO.

Pattern Detected

Recent LFS news has shown mixed price reactions, with some positive operational and earnings updates followed by negative moves, while certain strategic or brand-building announcements drew stronger positive interest.

Recent Company History

Over the past few months, LFS reported growing revenues, improving gross profit, and maintained cash balances above JPY2.4B, alongside an October IPO. Operationally, member counts and social business schools expanded, and the company won a Nagoya city club activity contract and released data on non-cognitive skill benefits. These developments frame today’s commitment line as another step in bolstering its financial base to support ongoing growth initiatives.

Market Pulse Summary

This announcement detailed a new multi-bank commitment line totaling 2.5 billion yen earmarked for working capital, supporting LFS’s expansion of children’s sports schools and social businesses. In the prior months, the company reported revenue growth, rising membership, and new municipal contracts, alongside a recent IPO. Investors may monitor how actively this facility is used, its impact on the balance sheet, and whether future earnings and contracts validate the planned global expansion.

Key Terms

working capital financial

"Use of funds: Working capital"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

AI-generated analysis. Not financial advice.

TOKYO, Dec. 25, 2025 /PRNewswire/ -- Leifras Co., Ltd. (NASDAQ: LFS, Head Office: Shibuya-ku, Tokyo, Representative Director: Kiyotaka Ito, hereinafter referred to as "the Company"), which operates sports schools for children and supports the local expansion of club activities, is pleased to announce that it has entered into a commitment line agreement (hereinafter referred to as "this Agreement") totaling 2.5 billion yen with Chikuho Bank, Ltd. (hereinafter referred to as "Chikuho Bank") and Mizuho Bank, Ltd. (hereinafter referred to as "Mizuho Bank") as arrangers and agents, respectively.

Purpose of this Agreement

Having listed on the NASDAQ market in the United States in October 2025, the Company will accelerate its global business expansion under its corporate philosophy of " Changing and Designing Sports."

This agreement was concluded with the aim of securing flexible financing methods and further strengthening the company's financial base.

The establishment of a commitment line totaling 2.5 billion yen from multiple financial institutions, with Chikuho Bank, a leading regional bank in Kyushu, and Mizuho Bank, a megabank, as arrangers, serves as a testament to the high evaluation of our business foundation and financial soundness.

Commitment Line Overview 

1. Chikuho Bank Arrangement Project
Contract signing date: October 31, 2025
Arrangement amount: 1 billion yen
Arranger and agent: Chikuho Bank Ltd.
Lenders: Chikuho Bank, Ltd., SBI Shinsei Bank, Ltd.
Use of funds: Working capital

2. Mizuho Bank Arrangement Project
Contract signing date: November 19, 2025
Arrangement amount: 1.5 billion yen
Arranger and agent: Mizuho Bank, Ltd.
Lenders: Mizuho Bank, Ltd., Saga Bank, Ltd., Fukuoka Bank, Ltd., Resona Bank, Ltd.
Use of funds: Working capital

Future Plans

We will focus on expanding our school and social businesses. Furthermore, research into children's non-cognitive abilities is actively progressing in Europe and the United States, and non-cognitive abilities are gaining more attention each year. In light of this situation, we are expanding our methods for developing children's non-cognitive abilities, which we established in Japan, to overseas markets. By acquiring overseas children's sports schools, we will promote the development of sports services globally and contribute to the development of non-cognitive abilities in children around the world.

Leifras Company Profile

Leifras Co., Ltd. is a social business company that sees its mission as resolving social issues through sports, based on its corporate philosophy of "Changing and designing sports."

The number of members in our children's sports school business has reached approximately 70,000, and we will continue to work hard to contribute to society through the sports business through club activity support, healthcare, and community collaboration projects.

Company name                 : Leifras Co., Ltd.
Listing market      : Nasdaq Capital Market
Ticker (US stock code): LFS
Headquarters                     : Ebisu Garden Place Tower 20th floor, 4-20-3 Ebisu, Shibuya-ku, Tokyo
Date of establishment        : August 28, 2001
Representative     : Representative Director Kiyotaka Ito
Capital                 : 784,666,480 yen (including capital reserve)
Business details    : Sports school business, event business, alliance business
                            Club activity support projects Community collaboration projects Healthcare projects
                            After-school day care service "LEIF" business
Website               : https://www.leifras.co.jp/
IR website            : https://ir.leifras.co.jp/jp/ 

 

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SOURCE Leifras Co.,Ltd

FAQ

What financing did Leifras (LFS) secure on Dec 25, 2025?

Leifras secured a ¥2.5 billion commitment line from multiple banks to diversify funding and strengthen its financial base.

How is Leifras' ¥2.5 billion commitment line structured for LFS?

The facility is split into a ¥1.0 billion arrangement (Chikuho Bank, Oct 31, 2025) and a ¥1.5 billion arrangement (Mizuho Bank, Nov 19, 2025).

What will Leifras (LFS) use the commitment line funds for?

Both arrangements are specified for working capital to support school and social business expansion.

Which banks arranged Leifras' (LFS) commitment line agreements?

Chikuho Bank acted as arranger/agent for ¥1.0 billion; Mizuho Bank acted as arranger/agent for ¥1.5 billion, with several lending banks participating.

Does the commitment line affect Leifras' (LFS) overseas expansion plans?

The company says the funds will support expansion, including overseas development of children's sports schools and services.