Basic Energy to double capital to P5 B

MANILA, Philippines — Listed Basic Energy Corp. is seeking to double its authorized capital stock to allow potential strategic investors to invest in the company and to secure funds in the future.

Basic Energy said its board of directors approved the increase its authorized capital stock from P2.5 billion to P5 billion, comprising 20 billion shares with a par value of P0.25 apiece.

The proposed capital hike will allow potential investors to come in and provide flexibility to raise funds for new and expansion projects at a later time.

Basic Energy said a potential investor is currently conducting legal and financial due diligence review.

“The potential investor is currently undertaking due diligence review of the company that covers legal, corporate, financial, technical, tax, labor and other aspects of the operations of the company, and upon completion thereof, the parties shall agree upon and executive the definitive agreements, which shall include, among other terms and conditions, the details of the share subscription of the investor,” Basic Energy said.

Basic Energy is developing several geothermal projects namely the Mabini Geothermal Service Contract in Batangas, Mt. Mariveles Geothermal Project in Bataan and Mt. Iriga Geothermal Project in Albay.

Recently, two of its geothermal contracts were terminated by the Department of Energy, namely the East Mankayan and West Bulusan geothermal projects for failing to complete the pre-development of the sites.

Apart from pursuing geothermal developments, it is also eyeing opportunities in other renewable energy projects, such as solar, wind and biomass energy, and is currently undergoing due-diligence studies and work.