CIRTEK HOLDINGS Philippines Corp. has obtained regulatory clearance to designate unissued preferred shares as part of its plan to sell up to $33 million shares by way of private placement.
The company was given a Certificate of Filing and Enabling Resolution by the Securities and Exchange Commission on Oct. 7, which allowed it to designate the subseries of its preferred B-2 shares.
From its 200 million preferred B-2 shares, 33 million unissued shares have been designated as preferred B-2 subseries B, which Cirtek plans to offer for sale or subscription.
Some 67 million shares, which were already issued in 2017, have been designated as preferred B-2 subseries A. The remaining 100 million shares will be designated at a future date.
To recall, Cirtek’s board of directors approved a plan to sell preferred shares by way of private placement last month. This involves up to 33 million preferred shares to be offered to qualified buyers for $1 each and listed at the Philippine Stock Exchange.
Cirtek has been raising funds recently to refinance short-term loans and fund the capital expenditures of its United States-based subsidiary Quintel USA, Inc.
It reissued P545.2-million commercial papers in late August and P494-million commercial papers in July, both under its P2-billion commercial paper program.
Quintel USA is eyeing to take part in the deployment of fifth generation (5G) network in the United States by providing antennas to telecommunications operators.
In the first six months of 2020, Cirtek posted an attributable net income of $2.63 million, growing more than double from a year ago on the back of better margins.
Shares in Cirtek at the stock exchange closed at P5.34 apiece on Friday, shedding four centavos or 0.74% from the last session. — Denise A. Valdez