Greenergy to hike capital

MANILA, Philippines - Listed renewable energy firm Greenergy Holdings Inc. will increase its authorized capital to P5 billion.

In a disclosure, Greenergy said it secured board approval to increase its authorized capital stock to as much as P5 billion from P2 billion.

This forms part of an equity sale with a Swiss firm that allowed Greenergy to raise P415 million, which the board also approved.

In August, Greenergy said it entered into an investment agreement with Cleantech Projekgesellschaft mbH, a fund managed by ThomasLloyd Global Asset Management (Switzerland) AG of Zurich.

The Swiss firm invested P415.537 million in Greenergy in exchange for primary shares of the latter as well as the issuance of stock warrants in favor of Cleantech.

It will allow Cleantech to buy 10.489 billion primary shares of Greenergy at a strike price of two centavos per share within one year from issuance of the warrant and additional 10.489 billion primary shares for three centavos each within three years from the warrant’s issuance.

The board of directors also approved the plan to sell 25.2 billion shares worth P252 billion to new investors.

“The total proceeds from the investment agreement in the amount of P667.537 million shall be used by the parties, through Biomass Holdings Inc., to invest in the biomass power plant of San Carlos BioPower Inc. in Negros,” Greenergy said.

The company will secure shareholder approval for the board’s decisions on Dec. 11.