Corp said on Wednesday its board of directors has approved a shares placement and subscription transaction worth P122.5 million to raise fresh capital and stimulate liquidity in the market for the company’s stock.
In a disclosure to the stock exchange, Pryce said its board approved the placing and subscription transaction of its shareholder Josefina Multi-Ventures Corp. (JMVC), in which JMVC will sell 24.5 million Pryce shares to an undisclosed institutional buyer for P5 per share.
“The Shareholder will thereafter subscribe to the same number of shares after the approval of an increase in the capital stock of the Company,” it said.
The shares involved in the transaction represent a 1.22 percent stake in Pryce.
“The transaction will allow for the stimulation of liquidity in the market for the shares of the company to benefit its stockholders by dispersing a number of shares at a fair value. Furthermore, it will infuse fresh capital into the company to fund its general working capital requirements,” Pryce said.
Late last month, Pryce said its board has approved a hike in its authorized capital to P2.24 billion from P2 billion “in anticipation of a contemplated placing and subscription transaction/s under negotiation, the details of which will be disclosed in due time.”
Pryce is a diversified company engaged in operating 12 memorial parks in major cities in Mindanao; manufacturing, distributing and marketing of industrial gases and liquefied petroleum gases (LPG) under Pryce Gases Inc. and Oro Oxygen Corp.; as well as in trading pharmaceutical products through Pryce Pharmaceuticals Inc.