SHARES of SP New Energy Corp. (SPNEC) were suspended for trading at the Philippine Stock Exchange starting on Friday after it fell below the minimum public float of 20 percent, while the bourse will lift its trading suspension on the shares of information-technology management services company DFNN beginning today, as the latter has submitted its annual financial statement for 2022.
For SPNEC, its public ownership went down after the Securities and Exchange Commission approved the increase of its authorized capital stock to P5 billion, divided into 50 billion common shares from the previous P1 billion.
On February 24 the company’s board approved the acquisition of 100 percent of the outstanding shares of Solar Phils. Power Project Holdings Inc. in various entities through an asset-for-share swap. It has subscribed to 24.37 billion SPNEC shares at P2.50 per share in exchange for assets.
On May 8 and 16 SPNEC’s board approved the execution of the Contract to Sell to obtain 100 percent of Solar Phils.’ assets. The acquisition will be paid in cash from the proceeds of the latter’s subscription to SPNEC shares to be sourced from the increase in SPNEC’s capital stock, in lieu of a tax-free share swap.
As a result of these deals, SPNEC’s shares owned by the public—previously at 47.52 percent—fell below the 20-percent minimum public float.
“Given the foregoing and pursuant to the Amended Minimum Public Ownership Rule and the relevant guidelines, the trading of SPNEC shares will be suspended effective June 2, 2023,” the Philippine Stock Exchange said. “Further, should the company remain noncompliant with the MPO requirement after the lapse of the six-month period from June 2, 2023, SPNEC shall be automatically delisted from the Official Registry of the Exchange.”
Meanwhile, for DFNN, its shares will resume trading at 10:30 a.m. starting today (Monday, June 5), confirmed the PSE.
Shares of DFNN—formerly known as Diversified Financial Network Inc.—has been held from trading since May 18 after it failed to file its 2022 annual financial statement to the PSE. Its shares were last traded on May 16 and closed at P2.92 each.
“With the adoption of modern forward-looking business strategies which are aimed to serve our clients better, DFNN has sometimes outpaced financial and accounting standards which [are not yet updated with new Philippine laws that have been passed on newer financial-technology] processes which require further regional assessment consequently caused the delay in the submission of our audited financial statement,” the company said in a statement.