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| NEO |
| 12/11/2007 |
The new market "NEO" is aimed at supporting companies possessing new technologies or new business models with growth potential and offers investors opportunities to invest in these companies.
 | Its logo, a bright and new comet in the sky, symbolizes speed and growth, both of which represent the characteristics of the market. |
NEO, in reference to the Greek word "neos," or "new," is an acronym of "New Entrepreneurs' Opportunity" and "New Evaluation Opportunity."
♦New Entrepreneurs' Opportunity
"NEO" aims to give entrepreneurs the opportunities to raise funds through capital markets as they expand their business using new technologies or new business models with growth potential. At the same time, we hope NEO becomes a forum offering opportunities to entrepreneurs for the proactive disclosure of information on actual conditions faced by corporations, including corporate governance.
♦New Evaluation Opportunity
"NEO" offers investment opportunities to investors who want to invest in companies with future potential. NEO requires listed companies to make milestone disclosures in addition to conventional timely disclosures and also asks companies to reinforce IR activities. We aim to enrich the quality and quantity of critical corporate information available for investors to evaluate listed companies in order to ensure investment opportunities that are based on thorough corporate evaluations.
♦Technology Evaluation Advisory Committee
One of the objectives of the NEO is to support companies possessing new technologies or new business models with growth potential. Because companies to be listed often aim to improve and commercialize new technologies, technology evaluation is essential. Therefore, when accepting applications for listing from companies that run businesses based on highly advanced technologies, JASDAQ requires such companies to submit documentation explaining their technologies. When necessary, it also requires such companies to submit documentation presenting the results of technology evaluations conducted by more than one outside expert. Based on the documents furnished by companies, the Technology Evaluation Advisory Committee evaluates the substantiality of relevant technologies at the time of application for listing (except in cases in which concrete results or tangible effects of technologies have been objectively confirmed and technologies have already been commercialized).
The Technology Evaluation Advisory Committee does not endorse technologies evaluated or the commercialization of products applying such technologies. In making its final decision on listing, JASDAQ fully respects the evaluation made by the Committee.
♦Milestone Disclosure
The Rules on Milestone Disclosure stipulate provisions for disclosure of information on the progress in achieving business plans of NEO-listed companies, factors behind achievement or lack of achievement of planned goals, and prospects and preconditions for future progress (Milestone Disclosure). Listed companies must make Milestone Disclosures within two weeks following quarterly corporate performance and financial review finalization. When making a Milestone Disclosure, the following information shall be included.
| 1. | Details of and preconditions for the company's business plan with a term of at least three consolidated fiscal years starting from the fiscal year (and, for a listed company not required to prepare consolidated financial statements, the business year) during which the company is listed on the NEO market. Details and preconditions shall be provided for each consolidated fiscal year. |
| 2. | Annual progress regarding the company's business plan, the outlook for achievement of planned goals, and relevant preconditions determined at the time of Milestone Disclosure. |
| 3. | With regard to annual progress and outlook for achievement of a company's business plan, factors behind achievement or lack of achievement of planned goals based on comparison with disclosed preconditions. |
Each NEO-listed company is also required to review the details of its business plan and related preconditions each consolidated fiscal year starting from the year during which such company is listed on the NEO market, in response to progress in achieving such plan or changes in external environment.
In such case, a NEO-listed company shall disclose a revised version of its business plan with a term of at least three consolidated fiscal years and related preconditions based on an annual review of such matters. When a company has revised its business plan, it must make a Milestone Disclosure based on details of and preconditions for the revised plan.
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