THE Securities and Exchange Commission (SEC) has rejected the appeal of Platinum Group Metals Corp. (PGMC) seeking the revival of its complaint against Oriental Peninsula Resources Group, Inc. over its alleged misrepresentation of its business activities in the registration statement filed for its initial public offer in 2007.
The corporate regulator sitting en banc decided on the case on Aug. 17, acting on an appeal against the initial decision of its Corporation Finance Department (CFD).
To recall, the PGMC filed in December 2007 a complaint against the listed firm alleging that it misrepresented subsidiary Citinickel Mines and Development Corp.’s ownership of nickel mining projects as well as interests in such activities, adding that Oriental failed to mention the valid and effective operating agreement between the two parties.
PGMC’s complaint further said that the company ”cannot operate the subject mining area because of an existing Writ of Preliminary Injunction; that Oriental is misleading the public in their Determination of the Offer Price by using false of inaccurate assumptions; and that Oriental omitted to mention material cases affecting the rights of Citinickel to the mining areas in the Municipalities of Espanola and Narra in Palawan.”
Oriental’s registration statement specified plans to bid out 300 million shares to the public through a maiden offer, with a price range set between P1.98 to P2.98 per share.
The CFD then dismissed the complaint for lack of merit, noting that Oriental was able to properly disclose material legal proceedings in its registration statement. The SEC unit also said that Oriental was able to present the risks of investing in the firm, and that it did not make any false representations or assumptions in the valuation of its offer price.
In the decision penned by all SEC commissioners and Chairperson Teresita J. Herbosa, the regulator said that PGMC’s appeal had no merit.
“Going through the Platinum’s (PGMC) memorandum of appeal, it merely reiterated the facts and arguments that it previously raised in the proceedings before CFD,” read the decision.
Oriental has been able to list its shares on the Philippine Stock Exchange despite PGMC’s complaint.
Oriental reported a net income of P374 million in the first semester of 2017, against the net loss of P4.45 million in the comparable period last year.
Shares in Oriental closed at P1.13 each on Thursday, five centavos or 4.63% higher than the previous trading day. — Arra B. Francia
