MJCI to convert P2.43-B shareholder deposits to equity

MJC INVESTMENTS Corp. (MJCI) intends to convert into equity about P2.43 billion in deposits from shareholders to move its owners’ equity into positive territory.

In a regulatory filing, the company said the conversion of the deposits from noncurrent liabilities into equity “would be more than sufficient to cure its negative equity position,” which it said stood at P1.53 billion as of Sept. 20, 2022.

It said the deposits to be converted came from a consortium of Hong Kong-based strategic investors and other shareholders, which amount to P2.11 billion. Around P321.23 million came from Manila Jockey Club, Inc.

MJCI intends to issue the corresponding shares from its authorized capital stocks at a subscription price based on either a discount to the 60-day volume-weighted average price (VWAP) or a premium over its 30-day VWAP per share.

The share price will be approved by the company’s board of directors during a special meeting in the first week of July and may be presented to shareholders at its annual meeting in September.

The subscription price will be offset against the deposits of the participating stockholders.

The company will execute the subscription agreement with participating stockholders within five trading days from the date of its special board meeting.

In a notice last week, the Philippine Stock Exchange, Inc. (PSE) suspended the trading of MJCI for non-filing its annual report for 2022.

“Pursuant to Article VII, Section 17.8 on Sanctions for Non-Compliance with Certain Structured Reportorial Requirements under the Consolidated Listing and Disclosure Rules of the Exchange, the failure of [MJCI] with reportorial requirements will merit the imposition of a trading suspension of its shares starting on May 18,” the PSE said.

MJCI is the property development arm of racetrack operator Manila Jockey Club. The latter started as a racetrack operator for horse racing and eventually expanded into real estate

The company owns and operates the Winford Hotel and Casino within the San Lazaro Tourism and Business Park in Sta. Cruz, Manila. — Adrian H. Halili

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