Calata boosting capital to P2B

MANILA, Philippines – Shareholders of agri trading firm Calata Corp. have approved the increase in the company’s authorized capital from P845.5 million to P2 billion to accommodate the possible entry of new investors.

They also approved the conversion of the company’s advances to AgriPhil Corp. amounting to P55.455 million into equity and the purchase of all issued and outstanding shares in AgriPhil at a par value of P100 or a total amount of P9.5 million.

The company accepted real estate properties offered by Avestha Holding Corp. as full settlement of its obligations to Calata.

Calata previously disclosed it was in talks with several Argentinian firms 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 planting high-value fruits and vegetables in greenhouse facilities.

Calata is currently subject of an investigation by securities regulators for potentially suspicious trading activities by a still unidentified group. The questionable trades were traced to people believed to be dummies of the group.

Its shares took a beating after the Securities and Exchange Commission and the Philippine Stock Exchange’s Capital Market Integrity Corp. said they are separately looking into Calata for a possible case of price manipulation. The company’s shares have since fallen below its initial public offering price of P7.50 each share.