THE SECURITIES and Exchange Commission (SEC) has approved the equity restructuring of Vitarich Corp., which will allow the firm to wipe out its deficit and declare dividends to shareholders.
In a disclosure to the stock exchange on Monday, the listed agribusiness firm said the SEC has approved its application to decrease its authorized capital stock by reducing par value of 3.5 billion shares from P1 each to 38 centavos per share, resulting to an authorized capital stock of P1.33 billion.
Vitarich decided to pursue a quasi-reorganization last May 2017, with the details finalized only last April. Aside from eliminating its deficit, the equity restructuring will let the company declare dividends to shareholders out of its unrestricted retained earnings.
As of end-2017, Vitarich’s deficit stood at P2.289 billion, higher than the previous year’s P2.417 billion.
The company noted that the change in its par value will be reflected on the Philippine Stock Exchange’s trading system starting on July 23.
Vitarich graduated from a court-assisted corporate rehabilitation in 2016 after applying for the said program back in 2006 due to the effects of the Asian financial crisis and avian flu outbreak in 2003 on its finances.
The company was previously tagged as the country’s leading poultry and feed producer prior to the challenging business environment.
Incorporated in 1962, Vitarich’s primary products are feed, farm, and food, which are sold to several distributors, dealers, and end users nationwide.
Vitarich has programmed to spend P130 million in capital expenditures this year, while also planning to build a feed mill with a capacity of 20 tons per hour in Luzon.
Earnings of Vitarich went up by 8.7% to P51.7 million in the first three months of 2018, lifted by a 25% jump in revenues to P1.96 billion.
Shares in Vitarich slipped by two centavos or 0.81% to close at P2.44 each at the stock exchange on Monday. — Arra B. Francia