Nippon Ichi Software Reportedly In Financial Hot Water With Employees Unable To Be Paid

[spam musubi]

https://www.siliconera.com/2019/05/...l-hot-water-with-employees-unable-to-be-paid/

The news is based off a recent announcement by the company via the JASDAQ stock exchange that Nippon Ichi was applying for an MS Warrant Stock, a move which is seen by traders as a last resort of sorts. Essentially, it's a way of raising funds by selling stocks for cheaper used by companies who have become unable to borrow funds from the bank or investors. The downside is that it screws over investors by incurring losses as stocks are now worth less. While this move can be used several times to raise funds (and this is Nippon Ichi's first, meaning Nippon Ichi isn't going to just shut down tomorrow), it incurs loss of trust from investors.

As for the allegations about not being able to pay employees, this is a deduction based on the announcement itself, which states the total requested funds raised of 573,638,750 yen is for the cost of developing a game, including employee pay. In the event that they don't manage to raise the full amount, employee salaries will be prioritized.

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Article goes on to speculate as to why, looking at recent events.

 

[Hexa]

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