LISTED TELECOMMUNICATIONS firm Now Corp. said its stockholders approved its equity restructuring plan, which is aimed to erase its accumulated deficit.
“At the Special Stockholders’ Meeting of Now Corp. held on Mar. 8, the stockholders unanimously approved (the) Company’s equity restructuring plan by 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 company said in a disclosure to the stock exchange on Monday.
The Velarde-led company is reducing the par value of its common shares to 70 centavos from the current P1. This will decrease its authorized capital stock to P1.502 billion from P1.12 billion, which will be divided into 2.06 billion common shares.
This restructuring is expected to erase the company’s deficit of P389.789 million, based on an earlier disclosure in January.
Now Corp. must now seek the approval of the Securities and Exchange Commission for the amendments in its Articles of Incorporation.
In the same Monday disclosure, the company said it is putting on hold its plan from last year to increase its authorized capital stock within the range of P600 million to P700 million, as it proceeded with the conversion of advances made by shareholder Velarde, Inc.
“Only the conversion into equity of Velarde, Inc.’s advances in the amount of P264 million based on the adjusted conversion price range between P1.50 and P1.70 per share as well as the listing of additional shares resulting from the said conversion are approved and affirmed for implementation,” it said. “The contemplated increase in authorized capital stock…is deemed set aside.”
Now Corp. stockholders agreed in June 2018 to increase the company’s authorized capital stock in connection with the conversion of advances made by Velarde, Inc.
Meanwhile, the company also announced on Monday it has partnered with outdoor advertising firm Digital Out-of-Home Philippines (DOOH PH) for its connected electronic billboard to be distributed in the coming months.
“Having a reliable broadband connectivity that provides guaranteed speeds and available 24/7 is key in pushing our content to all our electronic billboards in Metro Manila…. Partnering with Now Corp. and its affiliates as a broadband and content provider in delivering the promise of pushing live content to all our billboards is another breakthrough in a changing world of consumer advertising,” DOOH PH President Alvin Carranza was quoted in a statement as saying. — Denise A. Valdez