PetGo Co., Ltd. (Headquarters: Nakano-ku, Tokyo; President and CEO: Hiroshi Kurosawa; Securities Code: 7140; hereinafter "the Company") announces that, at a board of directors meeting held today, it resolved to enter into a capital and business alliance agreement with Blue Incubation Co., Ltd. (hereinafter "Blue Incubation"), a subsidiary of Seibu Holdings Co., Ltd. (hereinafter "Seibu Holdings"). The Company also resolved to issue new shares and the 18th series of stock acquisition rights to Blue Incubation through a third-party allotment. 1. Background of the Capital and Business Alliance Since its founding in 2004, the Company has pursued the management philosophy of "Making Pet Life Happy," focusing on the pet × digital domain, primarily through e-commerce of pet-related products. Currently, the Company operates 14 online stores selling pet products, with cumulative unique purchasers exceeding 2.75 million. Furthermore, aiming to evolve into a comprehensive platform covering various aspects of pet lifestyles, the Company has brought into its group FLAFFY Inc., which operates pet media businesses, and DogHuggy Inc., which operates a dog boarding matching platform, thereby expanding its business scope beyond product consumption ("goods") into experience-based consumption ("experiences"). To achieve further medium- to long-term corporate value enhancement, the Company recognizes the need to create new customer touchpoints and revenue opportunities beyond its existing e-commerce domain. Against this backdrop, awareness of pets as "family members" is growing, and the number of pet-friendly facilities is increasing. As a result, the pet outing market—including pet travel, accommodation, dining, shopping, and experiences—is expected to continue expanding. According to the Company's research, the domestic dog outing market (including day trips and overnight stays) is estimated to be approximately 400 billion yen. To better leverage its digital customer base, data, and m