NOW CORP. on Wednesday said it will undergo equity restructuring to erase its accumulated deficit.
In a disclosure to the stock exchange, the listed telecommunications company said its board of directors approved its equity restructuring plan during a meeting on Dec. 28.
The plan involves “reducing the par value of the common shares of stock of the Company and by applying the resulting additional paid-in capital to eliminate its accumulated deficit.”
The par value of the common shares will be reduced to 70 centavos from the current P1. This will result in a decrease in the company’s authorized capital stock to P1.44 billion from P2.12 billion, divided into 2.06 billion common shares.
In its third quarter financial report, Now said its deficit amounted to P414.356 million.
“The equity restructuring will not reduce the number of outstanding shares and will not change a stockholder’s interest in Now. Furthermore, the P1 par value per share of the existing preferred shares will not change,” the company noted.
Now said it will secure approval from the Securities and Exchange Commission for the amendment in its Articles of Incorporation to change the par value of common shares and authorized capital stock.
In the first three quarters of 2018, Now posted a 7808.9% increase in attributable net income to P6.7 million from P84,762 the previous year, driven by a 25.9% increase in revenue to P127.42 million from P101.17 million.
Shares in Now rose by 5.23% or 18 centavos to close at P3.62 each. — Denise A. Valdez
