Suntrust Resort’s board approves increase in its capital stock to P28B
LISTED Suntrust Resort Holdings, Inc. said its board had given the green light for the increase in the company’s authorized capital stock to meet regulatory and contractual obligations.
In a regulatory filing on Tuesday, Suntrust said its board approved on Sept. 25 the capital hike to P28 billion divided into 28 billion common shares with a par value of P1 each
Previously, the company’s authorized capital stock was at P23 billion consisting of 23 billion common shares at P1 apiece.
“[The higher capital stock is meant to] ensure that there is a sufficient number of unissued shares in the event that convertible bonds issued by the company to Fortune Noble Ltd. and Summit Ascent Investments Ltd. are converted into shares by any or both of them,” Suntrust said.
“[The move is also] pursuant to the requirement of the Philippine Stock Exchange, Inc. in connection with the previous listing of Fortune Noble’s 2,550,000,000 shares in the company, that the company conduct a follow-on offering of at least 10% of its outstanding capital stock within one year from Feb. 10, 2023,” the company added.
Aside from the higher capital stock, Suntrust’s board also approved the inclusion of retail activities to the company’s business purposes to expand its revenue sources.
“This is to enable the company to engage in retail activities, which is in line with its primary purpose of developing and operating tourism-related facilities such as hotels, resorts, private clubs, leisure parks, entertainment centers, restaurants, food and beverage outlets, other recreational facilities, and allied businesses, services, and facilities,” Suntrust said.
On Tuesday, Suntrust shares at the local bourse closed unchanged at 84 centavos apiece. — Revin Mikhael D. Ochave
