Significant Updates for American Depositary Shares Ratio by Tokyo Lifestyle

Tokyo Lifestyle Co., Ltd. Announces Changes to ADS Ratio

Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd, "Tokyo Lifestyle" or the "Company") (NASDAQ: TKLF), recognized for its diverse range of Japanese beauty and health products, has revealed an important update concerning its American Depositary Shares (ADS). The retailer aims to adjust the ratio of its ADSs to ordinary shares, shifting from one ADS representing one ordinary share to a new ratio of one ADS equaling ten ordinary shares. This change, referred to as the "ADS Ratio Change," is set to take effect very soon.

Impact of the ADS Ratio Change for Holders

For those holding ADSs, this alteration will essentially function as a one-for-ten reverse ADS split. It's vital to note that despite the change in the ADS ratio, individual proportional equity interests in the Company will remain unaffected for ADS holders. This move is strategically designed to improve the liquidity of the Company’s ADSs and assist in meeting the Nasdaq minimum bid price requirements.

Details Regarding the Exchange Process

On the effective date, which is just around the corner, holders of certificated ADSs will be required to surrender their existing ADSs to The Bank of New York Mellon, the designated depositary bank. In return, they will receive one new ADS for every ten existing ADSs they surrender. For those investors using the Direct Registration System and The Depository Trust Company, the exchange will occur automatically.

Expectations from the ADS Ratio Change

The transition from ten existing ADSs to one new ADS is designed to automatically take place on the effective date, with the requisite cancellation and issuance handled by the depositary. The trading of these shares will continue uninterrupted on the Nasdaq under the ticker symbol "TKLF." Importantly, no fractional new ADSs will be issued; instead, all fractional entitlements will be aggregated and sold, with the net proceeds distributed to ADS holders.

Future Trading Price Predictions

As the ratio change unfolds, there is an expectation for the ADS trading price to adjust accordingly. However, it is crucial to mention that the Company does not guarantee that the post-change trading price will be proportionally equal to or exceed previous levels. The liquidity of the ADSs is also not assured to improve as a result of this change.

About Tokyo Lifestyle Co., Ltd.

This Company, which has on its base in Tokyo, Japan, operates as a prominent retailer and wholesaler specializing in Japanese beauty, health products, luxury goods, and electronics. The offerings include a wide array of categories, from cosmetics and skincare to nutritional supplements and even home goods. Currently, Tokyo Lifestyle markets its products through a combination of physical retail locations, online platforms, and franchise and wholesale channels. Customers can expect a vast selection, including not only beauty and health products but also food and beverages.

Contact Information

For more inquiries, you can reach out to:

Tokyo Lifestyle Co., Ltd.
Investor Relations Department
Email: ir@ystbek.co.jp

Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

Frequently Asked Questions

What is the ADS Ratio Change?

The ADS Ratio Change refers to the modification of the current ratio from one ADS to one ordinary share to one ADS representing ten ordinary shares.

When will the ADS Ratio Change take effect?

The change will become effective shortly, and specific implementation details will be communicated to the ADS holders.

How does the ADS Ratio Change affect my ownership?

Your proportional equity interest in the Company remains unchanged despite the alteration in ADS ratios.

What will happen to fractional ADS entitlements?

Fractional ADS entitlements will be aggregated, sold, and any cash proceeds will be distributed to holders after deducting applicable fees.

How will this change impact trading of ADSs?

While the trading price of ADSs is expected to increase proportionally, there is no guarantee of a specific increase, nor that liquidity will change significantly.

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