Calata raises capital to P2B

Manila, Philippines - Agricultural firm Calata Corp. is raising its authorized capital from P845.4 million to about P2 billion in preparation for the entry of possible investors.

Calata president Joseph Calata said the capital increase is intended to facilitate the issuance of shares to potential investors.

In a disclosure to the Philippine Stock Exchange, Calata said it would also purchase all issued and outstanding shares of Agri Phil Corp. for P9.5 million. The company approved the conversion of its advances to Agri Phil, amounting to P55.45 million, into equity.

In addition, Calata accepted real estate properties offered by Avestha Holding Corp. as full settlement of the latter’s obligations to Calata.

Calata earlier said it was in taks with several Argentinian companies to form a possible joint venture for the large-scale production of corn. The proposed facility is expected to take up a total land area of up to 20,000 hectares.

The Argentinian firms supply high-tech mechanized corn production equipment.

Argentina is known as one of the leading countries in successfully utilizing modern technology and advanced farming practices in corn production.

Calata is also hoping to bring in Israel’s revolutionary and modern agricultural technology in the Philippines, particularly in planning of high-value fruits and vegetables in greenhouse facilities.

Israel has been sharing its expertise in agricultural development with developing countries such as India, Senegal, El Salvador, China and Kazakhstan.

Calata said Israel’s technology would allow Calata to easily achieve higher and better yields on high quality fruit and vegetable harvest which shall be available for commercial distribution not only in the Philippines but also for export.