SMILE-UP. updated their official website on the 15th, revealing their forward-looking strategy concerning fan clubs and music copyrights. Here's a comprehensive breakdown of the key points shared:

Transition to STARTO ENTERTAINMENT Co., Ltd.: 

Last October, the company revealed that starting from April this year, 28 groups and 295 talents associated with SMILE-UP. have transitioned to STARTO ENTERTAINMENT Co., Ltd. (referred to as "STARTO"). SMILE-UP. emphasizes its focus on compensation services and maintains its intention to cease operations once these tasks are completed. Notably, STARTO operates independently from SMILE-UP., with no capital ties between the two entities.

Focus on Compensation Work:

Noriyuki Higashiyama and Julie Keiko Fujishima, prominent figures within SMILE-UP., will dedicate their efforts to compensation work, including dialogue with victims. It's worth noting that they will not partake in STARTO's management nor receive profits from its activities.

Family Club Spin-Off: 

The company has decided to spin off its fan club division, known as the "Family Club," to operate independently. Initially, SMILE-UP. will retain a shareholder role in the Family Club post-spin-off, gradually reducing its ownership percentage over time. During this transition, SMILE-UP. will not receive any income distribution from the Family Club.

Copyright Handling: 

Currently, SMILE-UP. jointly owns existing music copyrights with Bright Note Music Co., Ltd. However, transferring these copyrights to STARTO presents significant financial challenges. Therefore, SMILE-UP. plans to gradually reduce its ownership stake while continuing to jointly manage copyrights with Bright Note Music. Additionally, new music copyrights will be jointly owned by STARTO and Bright Note Music.

In navigating these transitions, SMILE-UP. is proceeding with careful consideration, addressing challenges step by step with expert guidance. As of December last year, all tax payments related to succession tax deferral have been completed.

While closing a company with a 59-year history presents numerous challenges, SMILE-UP. is committed to moving forward steadily, with sincerity and integrity, alongside compensation efforts.

Your continued support is appreciated.

April 15, 2024 SMILE-UP Co., Ltd.