MEDIROM Healthcare Technologies Announces Business Transfer from Y’s, Inc.
July 22 2024 - 4:00PM
MEDIROM Healthcare Technologies Inc. (“we”, “our”, “us” or “the
Company”) hereby announces that its subsidiary MEDIROM Rehab
Solutions Inc. entered into an agreement to purchase a
rehabilitation business from Y’s, Inc., a Japanese corporation, as
of July 10, 2024.
Y`s, Inc. operates 10 rehabilitation facilities
around Tokyo for survivors of cerebral infarction, a type of
stroke, and the company does business with major private, public
and university hospitals in Japan. Y’s, Inc. started its Cerebral
Infarction Rehabilitation Center business with an awareness that
people suffering from the aftereffects of cerebral infarction are
not receiving adequate rehabilitation. The goal is to create a
society in which individuals and their families suffering from the
aftereffects of cerebral infarction can pursue the richness of
their own lives.
The number of stroke cases globally is
increasing every year, with the total number expected to reach 3
million by 2025. Even if a patient is fortunate enough to survive a
stroke, the rate of significant aftereffects is high. The number of
juvenile cases is also increasing, and the aftereffects often
hinder patients from returning to work and cause severe problems in
their lives. In most cases, rehabilitation is covered by health
insurance in Japan under the 150-day rule, which provides coverage
for in-patient care at rehabilitation facilities for only 150 days.
However, many patients require additional rehabilitation care in
order to return to everyday life.
MEDIROM, which operates a diversified healthcare
business based on the concept of "more health, more innovative,"
believes that transferring the operations of the Cerebral
Infarction Rehabilitation Center business from Y’s, Inc. will allow
us to provide a third option to patients other than the medical and
nursing care systems. We will not only improve the quality of daily
life of older people who have suffered a stroke but also support
working-age people who have given up on their dreams to return to
work.
Forward-Looking
StatementsCertain statements in this press release are
forward-looking statements for purposes of the safe harbor
provisions under the U.S. Private Securities Litigation Reform Act
of 1995. Forward-looking statements may include estimates or
expectations about the Company’s possible or assumed operational
results, financial condition, business strategies and plans, market
opportunities, competitive position, industry environment, and
potential growth opportunities. In some cases, forward-looking
statements can be identified by terms such as “may,” “will,”
“should,” “design,” “target,” “aim,” “hope,” “expect,” “could,”
“intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,”
“predict,” “project,” “potential,” “goal,” or other words that
convey the uncertainty of future events or outcomes. These
statements relate to future events or to the Company’s future
financial performance, and involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, levels of activity, performance, or achievements to be
different from any future results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements. You should not place undue reliance on forward-looking
statements because they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
the Company’s control and which could, and likely will, affect
actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects the Company’s current views
with respect to future events and is subject to these and other
risks, uncertainties and assumptions relating to the Company’s
operations, results of operations, growth strategy and liquidity.
Some of the factors that could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements in this press release include:
- the satisfaction of the conditions to close the asset
acquisition;
- the Company’s ability to realize the anticipated benefits of
the transaction;
- the Company’s ability to successfully integrate the acquired
business;
- the Company’s ability to obtain any necessary regulatory
approvals;
- potentially significant transaction costs and unknown
liabilities;
- the Company’s ability to achieve its development goals for its
business and execute and evolve its growth strategies, priorities
and initiatives;
- changes in Japanese and global economic conditions and
financial markets, including their effects on the Company’s
expansion in Japan and certain overseas markets;
- the Company’s ability to achieve and sustain profitability in
its Digital Preventative Healthcare Segment;
- the Company’s ability to maintain and enhance the value of its
brands and to enforce and maintain its trademarks and protect its
other intellectual property;
- the Company’s ability to raise additional capital on acceptable
terms or at all;
- the Company’s level of indebtedness and potential restrictions
on the Company under the Company’s debt instruments;
- changes in consumer preferences and the Company’s competitive
environment;
- the Company’s ability to respond to natural disasters, such as
earthquakes and tsunamis, and to global pandemics, such as
COVID-19; and
- the regulatory environment in which the Company operates.
More information on these risks and other
potential factors that could affect the Company’s business,
reputation, results of operations, financial condition, and stock
price is included in the Company’s filings with the Securities and
Exchange Commission (the “SEC”), including in the “Risk Factors”
and “Operating and Financial Review and Prospects” sections of the
Company’s most recently filed periodic report on Form 20-F and
subsequent filings, which are available on the SEC website at
www.sec.gov. The Company assumes no obligation to update or revise
these forward-looking statements for any reason, or to update the
reasons actual results could differ from those anticipated in these
forward-looking statements, even if new information becomes
available in the future.
About MEDIROM Healthcare Technologies
Inc.
MEDIROM, a holistic healthcare company, operates
308 (as of June 30, 2024) relaxation salons across Japan, Re.Ra.Ku®
being its leading brand, and provides healthcare services. In 2015,
MEDIROM entered the health tech business and launched new
healthcare programs using an on-demand training app called “Lav®”,
which is developed by the Company. MEDIROM also entered the device
business in 2020 and has developed a smart tracker “MOTHER
Bracelet®”. In 2023, MEDIROM launched REMONY, a remote monitoring
system for corporate clients, and has received orders from a broad
range of industries, including nursing care, transportation,
construction, and manufacturing, among others. MEDIROM hopes that
its diverse health-related product and service offerings will help
it collect and manage healthcare data from users and customers and
enable it to become a leader in big data in the healthcare
industry. For more information, visit https://medirom.co.jp/en.
ContactsInvestor Relations
Teamir@medirom.co.jp
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