STENIEL Manufacturing Corp. has secured approval from the Securities and Exchange Commission (SEC) to increase its authorized capital stock to P2 billion, the listed company said on Monday.
In a regulatory filing, Steniel said the SEC permitted the amendments to its articles of incorporation to increase its capital stock from P1 billion.
After securing the commission’s approval, the company said its bigger capital is divided into two billion common shares, priced at P1 each.
“The increase in authorized capital stock from P1 Billion to P2 Billion will cover the issuance of shares for the acquisition of Steniel Mindanao Packaging Corp. through a share swap transaction,” the disclosure said.
“It also covers for the conversion of loans of Greenkraft Corp. and Roxburgh Investments Ltd. into equity in the company via debt-to-equity transaction, intended to address the negative capital of the company,” it added.
During the third quarter of last year, Steniel posted a net income of P5.22 million, lower by 29.2% from P7.37 million in 2019. Its total revenues for the third quarter reached P10 million.
Meanwhile, the company’s net income for January to September 2020 improved 8.9% to P25.37 million, against the P23.29 million it posted in the same period in 2019.
Steniel has business interests in the manufacturing and selling of paper products, paper board, and corrugated carton containers.
Steniel shares were suspended from trading at the Philippine Stock Exchange since July 2006, when it last closed at 26 centavos per piece. — Revin Mikhael D. Ochave