The Securities and Exchange Commission (SEC) has approved the equity restructuring of Vitarich Corp that will allow the firm to wipe out its deficit and declare dividends to shareholders.
In a disclosure to the stock exchange on Monday, July 16, 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 billon.
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.
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. — Arra B. Francia