Ebecom gets SEC nod to hike capital from P10-M to P400-M

Ebecom Holdings Inc. has obtained the approval of the Securities and Exchange Commission to increase its authorized capital to P400 million from only P10 million, thus paving the way for its planned stock rights offering.

The company intends to issue 97.5 million shares to its stockholders at P1 per share. All shareholders as of Sept. 18 can buy 11 shares for every one share held.

Asian Alliance Investment Corp. was tapped as lead underwriter for the issue.

The bulk of the net proceeds, estimated to be P93.2 million, will be used to pay its outstanding loan with Westmont Investment Corp., amounting to P64.51 million. Of the total obligation to Wincorp, P52 million represents the outstanding loan principal while the balance is accounted for by accrued interest.

The company used proceeds of the loan to finance the purchase of a property in Tanza, Cavite in connection with a joint venture agreement with Sta. Lucia to develop a residential, commercial and golf course complex.

A portion of the proceeds of the offer will also be used to liquidate shareholder advances, amoun-ting to P1.66 million, and fund the company’s operating expenses and other working capital requirements.

Of the total shareholder advances, P1.1 million represent expenses related to the offer while the balance of P550,000 is accounted for by operating expenses and working capital.

The balance of the net proceeds, amounting to P27.14 million, will be placed in an interest-bearing account from which the company may draw at any time, for prospective investments and working capital requirements.