Listed food and beverage company RFM Corp. is set to issue 340 million shares to some of its controlling shareholders, specifically those who lent the company some of their shares for fund-raising.
In a regular meeting, the Board of Directors of RFM approved the issuance of 340 million shares from the unissued capital stock of the corporation to some of its controlling stockholders, which include Horizons Realty Inc., BJS Development Corp., Triple Eight Holdings Inc. and RPMC Resources Inc.
The aforementioned stockholders were the selling shareholders in the equity fund- raising that RFM did, which consisted of a placing and subscription transaction.
The transaction was implemented in two concurrent stages, the placement tranche and the subscription tranche.
The stages comprised an offer and sale by the shareholders not exceeding 450 million of their existing shares in the corporation and as part of the transaction, the subscription by the selling shareholders, and the issuance by the corporation to the selling shareholders of unissued common shares sold in the placement tranche.
“The board likewise authorized that the 340 million offer shares be listed with the Philippine Stock Exchange at the soonest practicable time,” the disclosure of RFM to the local bourse stated.
During the first nine months of the year, RFM Corp. reported a 19-percent jump in its profit to P525 million from the P441 million it recorded in the same period in 2012.
However, its sales revenue dipped 9 percent to P7.1 billion for the first nine months from last year’s P7.8 billion.