SHAREHOLDERS of listed seafood processor Alliance Select Foods International, Inc. have approved the company’s equity restructuring plan, which will reduce the par value of its shares of stock to P0.50 from the current P1.00 so that the resulting additional paid-in capital can be used to eliminate its accumulated deficit.
“However, the number of outstanding shares of the company will not be reduced, and stockholders’ respective ownership interests in Alliance will remain the same,” the company told the Philippine Stock Exchange on Friday.
The company will need to secure the nod of the Securities and Exchange Commission before proceeding with the plan.
“Once effected, the proposed restructuring of equity will eliminate the deficit of the Company that was accumulated for several years prior to [Alliance’s] current profitability,” Alliance said.
In prior reports, Alliance’s top officials confirmed that the company was working toward a turnaround in 2017, with the restructuring seen to put the company in a better financial position to declare dividends at the appropriate time.
Alliance is a homegrown international seafood company which exports its products to Europe, Japan, the US, and the Middle East. It employs local communities at its tuna processing plant in General Santos City.