SEAFOOD processor Alliance Select Foods International Inc. is set to conduct a P1-billion stock rights offering to fund its operations and expansion program.
In a disclosure to the Philippine Stock Exchange, Alliance Select said its board of directors has approved an increase in the company’s authorized capital stock to P3 billion from P1.5 billion to give way to the planned stock rights offer that would raise up to P1 billion in fresh funds.
The planned stock rights offer will involve 1 billion shares priced at P1 each.
“[The board] approved today related measures that are expected to raise up to P1 billion in capital to fund the company’s operations and growth,” Alliance Select said.
The increase in authorized stock capital is still subject to shareholders’ approval in a meeting scheduled on March 31. The record date will be on March 11, which will be subject to regulatory approval by the Securities and Exchange Commission.
In December last year, Alliance Select shuffled its board of directors and brought in a new president and chief executive officer, Raymond See, previously an executive of Pilipinas Shell Petroleum Corp. for 24 years.
Alliance Select chairman Jonathan Dee is confident that the new CEO will raise the company to “even greater heights” given the latter’s experience in growing a company.
For the first nine months of 2014, the company’s net loss widened to P733,903 from P239,259 in the same period of 2013 due to higher operating expenses despite increased revenues.
Formerly Alliance Tuna International Inc., Alliance Select was incorporated in 2003 as a seafood processor which exports its canned seafood products to Europe, North America, Asia, Africa and South America. Its products include institutional and retail packed canned tuna, smoked salmon, salmon by-products and fishmeal that contains tuna loins and other fish parts.