## profit

How profits from stock trading are calculated

After the company is listed on a stock exchange, the shares in the possession of the LINK will be sold off in stages, with market conditions taken into account.
The profits made when the shares are sold will be distributed among the purchasers.
The amount received will depend on the package purchased.For these reasons, the stock may not all be sold on the redemption date.

## period

The value of each share in US dollars will vary depending on the time of purchase.
By purchasing sooner, you may be purchasing at a time when the stock price in US dollars is relatively low, in which case the profits will be higher when selling the stock.

• 1stPeriod

\$4/1CB

May/12019

Aug/162019

• 2ndPeriod

\$6/1CB

Aug/172019

Sep/302019

• 3rdPeriod

\$8/1CB

Oct/12019

Oct/312019

For example, if the share price at the time when the convertible bonds held by the LINK are sold is \$12:

Prices during each
purchase period

Prices during each
purchase period

profit on the sale
during each purchase period

1st period

1CB/
\$4

capital
gain
\$8

2nd period

1CB/
\$6

capital
gain
\$6

3rd period

1CB/
\$8

capital
gain
\$4

Convertible bonds sold while share price is \$12

The shares were purchased at a price of \$4 , so the profit of \$8 on the sale is considered a capital gain. (= 12 - 4)

The shares were purchased at a price of \$6 , so the profit of \$6 on the sale is considered a capital gain. (= 12 - 6)

The shares were purchased at a price of \$8 , so the profit of \$4 on the sale is considered a capital gain. (= 12 - 8)

The earlier the shares are purchased,
the higher the capital gains will be.

profit on the sale
during each purchase period

1st period

The shares were purchased at a price of \$4 , so the profit of \$8 on the sale is considered a capital gain. (= 12 - 4)

2nd period

The shares were purchased at a price of \$6 , so the profit of \$6 on the sale is considered a capital gain. (= 12 - 6)

3rd period

The shares were purchased at a price of \$8 , so the profit of \$4 on the sale is considered a capital gain. (= 12 - 8)

## amount of profit

Profits from increases in the share price

We will distribute a percentage of your Capital Gain to those who purchase the same package as you.

1
Amount purchased ×
Shares
sold
× Number of shares
at time of purchase

Amount raised
2
Shares
sold ×
(Share price at time of sale - Share price at time of purchase ×
Rate of capital gain×
Amount purchased

Total amount of the same package buyer as you
Example calculation

【Parameters】

For the purposes of this example, the amount raised during the first purchase period (share price: \$4) will be \$4 million. The number of shares is therefore 1 million (= \$4 million / \$4).

We will run a simulation to determine the total amount for purchasers of the \$30,000 Luxury package (capital gain = 25%), supposing that 200,000 of the 1 million shares are sold at \$10. The number of people who have purchased the Luxury package during the first period will be set at 50.

Calculation results
1

amount of the package purchase

= \$30,000 x 200 thousand stock x \$4/\$4 million
= \$30,000 x 20%
= \$6,000

2

Amount of profit from rise in stock price

= 200 thousand stock x (\$12 - \$4) x 25% \$30,000 / \$1.5 million
= \$2 million x 25% / 50
= \$8,000

The sum of (1) and (2) is \$14,000, which is the amount that will be distributed to the Luxury purchasers at the time of sale in this case.
Supposing that all shares for the first period are sold at that same price of \$12, roughly double that total will be distributed to the Luxury purchasers.

Note

Sales will take place in order of purchase of convertible bonds, with the rate at which the share price is rising taken into account. For that reason, all convertible bonds may not be sold even after the redemption date.