FreeBit and Culture Convenience Club Announce Strategic Capital and Business Alliance in the Mobile Business

2015.02.18 Press Releases
Culture Convenience Club Co., Ltd.

Culture Convenience Club Co., Ltd. (President and CEO: Muneaki Masuda, hereinafter referred to as "CCC") and FreeBit Co., Ltd. (Chairman and Representative Director: Hiroki Ishida, President and Representative Director: Nobuaki Tanaka, hereinafter referred to as "FreeBit") have entered into a strategic capital and business alliance as detailed below.

1. Details of the business partnership
FreeBit and CCC will propose new smartphone services that offer high customer value, leveraging CCC's retail sales capabilities and customer base, as well as the MVNE business operated by FreeBit.
(1) CCC will adopt “freebit mobile” as the MVNO business platform.
(2) Freebit Mobile Co., Ltd. (hereinafter referred to as "Freebit Mobile"), a consolidated subsidiary of Freebit that is scheduled to take over the "freebit mobile" business, will change its name to "Tone Mobile Co., Ltd." (hereinafter referred to as "Tone Mobile") on March 1st and will issue new shares to CCC through a third-party allotment.
(3) Freebit will transfer the master license for the franchise program to CCC Mobile Co., Ltd. (hereinafter referred to as "CCC Mobile"), and CCC Mobile will develop "freebit mobile" sales agents.
(4) Tone Mobile will receive back-end services from FreeBit, including network and terminal procurement.
(5) Hiroki Ishida will be appointed President and Representative Director of Tone Mobile.

2. Details of the capital alliance
(1) CCC will underwrite a third-party allotment of new shares, holding 51% of Tone Mobile's voting rights.
(2) CCC and CCC Mobile will subscribe to FreeBit’s new shares after the third-party allocation, with CCC holding 11.1% of the voting rights and CCC Mobile holding 2.2%.

3. Future plans
Effective date of absorption-type split of "freebit mobile business" to Freebit Mobile: March 1, 2015
FreeBit Mobile changed its name to Tone Mobile on March 1, 2015
Date of subscription for third-party allotment of FreeBit shares by CCC and CCC Mobile: March 12, 2015
CCC's underwriting of Tone Mobile's third-party allotment of new shares: March 12, 2015

[Outline of the joint venture]
■Name: Tone Mobile Co., Ltd.
■Address: 3-6 Maruyamacho, Shibuya-ku, Tokyo
■Representative name: Hiroki Ishida, Representative Director and President
■Established: January 16, 2015
Capital: 1,023 million yen
■ Business details: Internet communications business

About FreeBit, Inc.
■Name: Freebit Co., Ltd.
■Address: 3-6 Maruyamacho, Shibuya-ku, Tokyo
■Representatives: Chairman and CEO Hiroki Ishida, President and CEO Nobuaki Tanaka
■ Business details: Providing infrastructure to Internet connection providers, providing ubiquitous networks, and consulting on Internet businesses
■Established: May 2000
■Capital: 3,045 million yen *As of July 31, 2013

Materials related to this matter

FreeBit and Culture Convenience Club Announce Strategic Capital and Business Alliance in the Mobile Business

Inquiries regarding this matter
Culture Convenience Club Co., Ltd.
Public Relations Officer: Mariko Hanai
TEL: 03-6800-3570