note CEO sells about 3% of company shares in the market; stock plunges right after strong earnings, saying the sale was to improve liquidity

note disclosed that CEO Sadakaki Kato sold 550,000 shares, about 2.84% of outstanding stock, in the market.

The sale came the day after strong earnings, and note said the purpose was to improve liquidity ahead of a possible move to the Tokyo Stock Exchange Prime market.

Kato’s stake fell to 26.31%, while the share sale and sharp stock drop drew investor attention to supply-demand and sentiment risks.