The Securities and Exchange Commission (SEC) has approved the application of publicly listed firm Now Corporation for equity restructuring to eliminate its accumulated deficit.
The SEC also gave the go-signal for the reduction in its authorized capital via a lowering of the par value per share.
The conversion of certain debts to equity would wipe out the company’s deficit as of Dec. 31, 2018 of P402.1 million by reducing its surplus of P455.18 million.
The company’s par value was reduced from P1 per share to 70 centavos per share. The reduction in par value occurred with no shareholder dilution involved.
Company officials said the move will improve Now’s debt-to-equity ratio and will result in an improvement in its capability to raise financing for future expansion in its core business, particularly broadband Internet.
Engaged in the use of technology, Now Corp.’s information technology services portfolio enables digital transformation for enterprises.
With businesses in the telecommunications, media and technology space, Now Corp. offers software licenses and integration, IT manpower solutions, and a fast-growing broadband service.
Now Corp. offers bundled services by providing enterprises with fiber broadband connectivity with collaboration software, cloud services, live streaming technical services, web development, and wireless cable TV.
The company intends to leverage on business partnership opportunities with local government and entrepreneurs to provide better Internet connection to the country by “democraticizing telecommunications.”