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THE Securities and Exchange Commission (SEC) has revoked Cosmos
Bottling Corp.’s right to sell securities due to its failure to
submit reportorial requirements and other obligations under the
Securities Regulation Code.
The disclosure to the Philippine Stock Exchange
read that the SEC, through its Corporate Finance Department (CFD),
revoked the firm’s registration while requests to lift the order
of suspension issued on May 8 last year were denied.
The suspension sprung from Cosmos’ continued
failure to submit its 2005 annual report. The soft drink maker
received the suspension order on May 10 and was given until July 9
last year to comply with the requirement. But Cosmos failed to meet
the deadline as it submitted the reports on October 31, more than
three months late.
The firm “committed subsequent violations”
due to its late submission of its first, second and third quarterly
reports for 2006 and its 2007 current reports. For the late
submission of its 2006 annual report, Cosmos paid additional
penalties on October 19 and December 26 last year.
Cosmos was also penalized for the late filing of
its second and third quarterly reports for 2006 on January 28, 2008.
“This revocation order, however, shall not
exempt the company from complying with its reportorial and other
obligations,” Justina Callangan, SEC-CFD Director, said.
At end-September, the soft drink maker incurred
a net loss of P786.3 million, a reversal from its P165.35 million
profit the same period the previous year as cost of sales rose due
to more expensive packaging materials, tolling fees and
concentrates.
Originally named Manila Aerated Water Factory,
Cosmos was the first home-grown soft drink manufacturer. In 1989,
food and beverage firm RFM Corp. acquired Cosmos, which listed at
the local bourse 5 years later. In a bid to divest from non-core
operations, the Concepcion-led company in 2001 sold the soft drink
maker to its rival, San Miguel Corp. and The Coca-Cola Co. (TCCC)
under Coca-Cola Bottlers Philippines Inc. (CCBPI).
Cosmos is currently 98.21-percent owned by
Philippine Bottlers Inc., a unit CCBPI of San Miguel sold its entire
stake in CCBPI to TCCC in February last year.
-- Likha C. Cuevas-Miel
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