The capital restructuring is aimed at wiping out a portion of the company’s deficit by applying the remaining additional paid-in capital of P32.05 million. As of end-December last year, Nextstage had a capital deficit of P74.28 million.
The restructuring also involves the decrease in authorized capital stock of Nextstage from P500 million to P100 million in line with the firm’s quasi-reorganization plan.
This resulted in the decrease in the firm’s par value per share from P1 to P0.20. The par value of the shares had subsequently been raised to P1 per share to generate sufficient reduction surplus necessary to wipe off the acumulated deficit as of Dec. 31, 2002 amounting to P184.15 million.
Nextstage was formerly traded as Pacific Cement Co. Inc., which engaged in the manufacture and trading of cement and related products.
But due to financial constraints, it changed in June 2000 its primary purpose from cement manufacturing to a holding company. Thereafter, its corporate name had been changed to Pacemco Holdings Inc.
In December of that year, it acquired 100 percent of the capital stock of Nextstage, a company that was established to take advantage of the opportunities in the growing technology sector and the emerging electronic economy. Subsequently, the stockholders of the company approved the merger of Pacemco and Nextstage.
Nextstage is into smart-card related projects particularly in payments, security and other value-added services and applications for both the domestic and international markets.
On the local front, the company’s plan is to keep on developing the market for smart card payments and other applications by closing deals with schools and communities.
In the international arena, Nextstage inteads to pursue global projects for Europay Mastercard Visa migration-related projects via its strategic partnership with MasterCard International and security and fraud applications development projects for a foreign client in the health industry.