LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced that it had entered into a Stock Transfer Agreement dated May 20, 2026 (the "Agreement") with shareholders of Tokai Sports Co., Ltd. ("Tokai Sports") to acquire 100% of equity interest of Tokai Sports (the "Acquisition"). Tokai Sports is an established sports school operator in Japan with a 40-year history (predecessor Tokai Sports Club was founded in 1984) that has produced several international-level professional athletes. The Acquisition is an important initiative of Leifras to expand its market share in the sports school market in Japan and increase customer lifetime value ("LTV").

Pursuant to the Agreement, Leifras agrees to acquire 100% of the equity interest of Tokai Sports. Tokai Sports is expected to become Leifras' wholly owned subsidiary effective June 1, 2026. This transaction is a strategic investment executed against the backdrop of the visibility and financial strength gained through the Company's Nasdaq listing. By acquiring Tokai Sports, which serves approximately 1,200 sports school members and operates at about 20 affiliated kindergartens and daycare centers, Leifras expects to strengthen its market position in the sports school business, especially in the Nagoya and Owariasahi areas.