Shares of Medirom Healthcare Technologies Inc. (NASDAQ:MRM) jumped 22% in premarket trading on Thursday after its health tech subsidiary, MOTHER Labs, approved a private placement of new shares to two senior executives.
The private placement is part of MOTHER Labs’ Series A funding round and assigns the subsidiary a valuation of approximately 9 billion yen (around $60 million). The investment will be made by Yoshio Uekusa, President and CEO, and Ryo Saito, Director, with completion expected by the end of October.
MOTHER Labs serves as the health technology arm of the MEDIROM Group, offering digital health programs via its “Lav” wellness app and developing innovative wearable devices. The company said the capital increase is designed to accelerate strategic decision-making and reinforce its leadership structure.
Proceeds from the investment will be used to strengthen MOTHER Labs’ balance sheet, support the development of a next-generation version of its MOTHER Bracelet, and build systems to streamline product commercialization.
According to MEDIROM, direct investment from top management reflects a commitment to increased accountability and growth, as the company scales its wellness and healthcare operations both in Japan and abroad.
Medirom Healthcare Technologies stock price
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