LISTED exploration company The Philodrill Corp. has extended its subscription call for half the balance of its stock rights offering (SRO) to Dec. 31, 2021, the firm told the local bourse on Thursday.
The SRO, which was previously issued in 2009, had a 50% balance on subscription receivable that stood at P175.20 million last month.
The board of directors explained that the firm offered an extension on the SRO subscriptions as the global pandemic restrictions caused a delay in the implementation of projects, while noting that there was “no immediate need for liquidity.”
“The Board has decided to further extend the subscription call period to “at any time, on or before December 31, 2021,” Philodrill said in a regulatory filing.
The SRO previously commenced on Jan. 15, 2009, when Philodrill offered 38.37 billion new common shares at a par value of P0.01 per share to all stockholders of record.
Eligible stockholders were allowed to subscribe to one offer share for every four common shares held at an offer price of P0.01 per share, as of record date.
“At least 25% of the subscription price shall be payable upon subscription, another 25% shall be payable after 60 days from end of offer period, and the balance upon call by the Board of Directors not later than December 31, 2009,” Philodrill said, quoting the terms of its 2009 SRO.
It said the deadline was further extended when the Galoc oil field, of which it is a partner, started operating.
“During that time, the Company had a positive cash flow, there was no need for additional funds to cover operating expenses. In recent years, with the Company’s prudent measures implemented, it was able to sustain opex without needing to call on the subscription payments,” Philodrill said.
Last September, the firm, which operated a petroleum block northwest of Palawan, said that it would seek a 50-year extension of its service contract with the government once its contract expires in 2024.
Philodrill’s active petroleum projects cover production and exploration areas in onshore Mindoro and offshore Palawan, and holds various service contracts with the Department of Energy.
Philodrill shares on Thursday shed 8.33% to close at P0.011 apiece. — Angelica Y. Yang