Listed gaming technology provider DFNN Inc. is taking several measures to improve its financial position in order to be able to declare dividends.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, DFNN said its board of directors has approved the issuance of 8.307 million common shares to various shareholders “by virtue of conversion of loans into equity.”
“The conversion is demonstrative of the shareholders’ strong support for and belief in the long-term growth of DFNN,” the company said.
It said the board on Friday last week also approved the listing on the PSE of 91.284 million shares out of its authorized capital stock and the additional 8.307 million shares to be issued;
In addition, the board also approved “a quasi-reorganization to eliminate the Company’s deficit in its retained earnings account by offsetting the deficit as of December 31, 2014 against additional paid in capital.”
“The quasi-reorganization was approved in order for DFNN to sooner move into a position to declare dividends,” the company told the stock exchange.
DFNN reported net income after tax of P2.83 million during the first half of this year, a turnaround from its P26.5 million net loss in the same period last year.
Since 2014, the company has been expanding its gaming suite, particularly the number of terminals and locations of Instawin — its electronic gaming machine offering. The company has expanded outside Metro Manila which also contributed to the hike in revenues.
DFNN earlier said it was on track to strengthen the footprint of its electronic gaming machine and triple its existing terminals by year end. Instawin’s games include those from popular developers such as PlayTech, SG8, PlayNGo and SHL.