Listed food and beverage firm RFM Foods Corp. is proceeding with its equity fund raising that has long been delayed from volatile market conditions.
In a regular meeting held Wednesday, the RFM board of directors agreed to proceed with the equity fund raising, which they initially approved two years ago.
On January 2011, RFM announced that its board approved the equity fund raising plan, which consisted of a placing and subscription transaction. The company secured the approval of its shareholders the same month.
The fundraising involves a placing and subscription transaction not exceeding 450 million of the existing shares in the corporation.
The approval of the board and the shareholders likewise cover the fixing of the offer price of up to the prevailing market price for the shares, as may be agreed with the lead manager, of which the offer price may be adjusted to account for the expenses of the offer.
However, months after the approval was secured, the company decided to “defer indefinitely the said equity fund raising due to volatile market conditions”.
Given the current market conditions, the company has decided to proceed with the equity fundraising.
“The resolution was passed due to the renewed interest and confidence of investors in the Philippine equities market and in the growth plans of the corporation, as well as the interest shown by several investing funds to invest in the corporation, as it pursues possible acquisition and expansion opportunities and capital expenditures,” RFM said.
Madelaine B. Miraflor