PHILAB Holdings Corp. has raised P71.5 million following its subscription agreement with Highgarden Investments Ltd.
In a disclosure to the stock exchange on Wednesday, Philab said it has executed a subscription agreement with Highgarden consisting of 71.5 million shares in the firm at P1 each. The shares will be taken from the unissued authorized capital stock of the company.
The listed firm will accordingly increase its outstanding capital stock to 2.13 million common shares from 2.06 million. Highgarden will then have a 3.35% stake in the company.
In a separate disclosure, Philab said the planned subscription agreement of Yamazaki Financial Lmd amounting to P500 million failed to push through.
To recall, Philab said in February that Yamazaki executed a deal to infuse P500 million in the company, subscribing to an additional 200 million common shares at P2.50 each.
At the same time, the company said it has terminated its $10-million investment in Veritas Genetics International Ltd. announced last February. The partnership with Veritas was supposed to include a genomics facility as part of Philab’s expansion of its operations in the Asia Pacific region.
Veritas describes itself as a “globally known genomics innovator” that screens human DNA through myGenome, a whole genome sequencing kit that helps assess a person’s risks related to inherited diseases, drug sensitivities, traits, and ancestry.
The firms were also supposed to establish a new program on Pharmacogenomics, which would allow doctors to determine how an individual’s genetic makeup will respond to drugs.
However, Philab said it is still negotiating a potential $3-million investment in the firm.
Philab committed to spend $150 million in capital expenditures this year, the bulk of which was intended for the rollout of up to 60 satellite clinics in the country. The clinics will target patients who need primary care but are unable to immediately reach hospitals.
The company said its goal is to have up to 1,000 satellite clinics in the long-term.
About $50 million of the planned spending will be used to invest in companies with interests in genomics.
Incorporated in 2000 as Alterra Capital Partners, Inc., Philab serves as the holding firm for Philab Industries, Inc., which provides life science equipment and services to health care, pharmaceutical, education, and research industries.
The company is listed on the small, medium, and emerging board of the Philippine Stock Exchange (PSE). Trading of Philab shares however has been suspended since May 18 due to its failure to comply with an annual report that complies with the PSE’s structured reportorial requirements.
Philab widened its net loss attributable to the parent to P107.85 million in the first nine months of 2018, compared to an attributable loss of P860,006 in the same period a year ago. The company managed to book gross revenues of P155.15 million during the nine-month period. — Arra B. Francia
