BASIC ENERGY Corp. announced that a real estate firm is set to acquire at least 67% of its outstanding capital stock.
In a stock exchange disclosure on Monday, the company said it signed a memorandum of agreement that provided for the sale of its 9.83 billion primary shares to MAP 2000 Development Corp. (M2DC).
The shares will be subscribed and issued out of the increase in Basic Energy’s authorized capital stock to P5 billion from P2.5 billion, which is awaiting approval from the Securities and Exchange Commission (SEC).
“[The] said capital increase was approved by the company’s stockholders at the annual stockholders’ meeting held last October 23, 2020,” the disclosure said.
In a disclosure in October, Basic Energy said it had secured approval from its stakeholders to double its authorized capital stock to P5 billion, which consists of 20 billion shares that have a par value of P0.25 per share.
The company said the increase in its authorized capital stock was meant to create enough shares of stock for subscription by possible investors.
“This is also to provide flexibility to the company in the issuance of additional sharers in the future to raise capital to fund new projects and possible expansion of existing projects, without having to secure SEC approval again for an additional increase in capital stock,” the company said.
According to the disclosure, M2DC is a Philippine-registered company that has business interests in real estate acquisition, development, and management, among others.
Basic Energy shares were last traded on Dec. 18, when it closed at P0.470 apiece. — Revin Mikhael D. Ochave
