DISCOVERY WORLD Corp. is issuing shares to JT Perle Corp., a company led by its chairman, to raise up to P304 million to support its capital requirements.
In a disclosure to the exchange on Thursday, Discovery World said its board of directors had allowed JT Perle to subscribe to up to 190 million shares in the company, which will be priced at P1.60 each.
At the price, the company may raise up to P304 million from the issuance of shares, which will be taken and issued from its authorized and unissued capital stock.
“All of the funds to be raised from the subscription of JT Perle will form part of the corporation’s working capital,” Discovery World said.
As a result, JT Perle would own more than 10% of Discovery World’s resulting outstanding capital stock. This qualifies the deal under the Rule on Additional Listing of Securities of the Philippine Stock Exchange, Inc. (PSE).
The PSE decided to issue a one-hour trading halt on the shares of Discovery World on Thursday, which lasted from 9 a.m. to 10 a.m. The company’s shares closed at P1.90 apiece, up 30 centavos or 18.75%.
Discovery World is also required to get the approval of its shareholders for the planned transaction with JT Perle. It scheduled a special stockholders’ meeting on Nov. 26.
In 2018, Discovery World told the exchange that JT Perle bought a total of 35,000 shares of the company. At the time, it said John Y. Tiu, Jr., the chairman and chief executive officer of Discovery World, held 60% of the outstanding shares of JT Perle.
Discovery World is a hotel and resort operator with several facilities across the country, such as Discovery Shores Boracay, Platitos Resto-Bar, Sands Lounge, Indigo Resto-Bar, Sunken Pool Bar, Forno Osteria, Estate XI, 360 Roof Lounge, Terra Spa, and Club Paradise.
In the first semester, the company recorded an attributable net loss of P153.25 million, reversing last year’s attributable net profit of P42.13 million, due to travel restrictions brought by the coronavirus pandemic. — Denise A. Valdez