LISTED DFNN, Inc. said it will conduct a quasi-reorganization to remove the deficit in its retained earnings, as the information technology solutions provider moves to declare dividends soon.
In a special board meeting last Friday, DFNN’s board of directors approved the issuance of 8.31 million common shares to existing shareholders through a debt-to-equity conversion.
“The conversion is demonstrative of the shareholders’ strong support for and belief in the long-term growth of DFNN,” the company told the Philippine Stock Exchange (PSE) yesterday.
The board also cleared the listing with the PSE of 91.28 million shares out of its authorized capital stock whose increase was approved by the Securities and Exchange Commission in August; as well as the additional 8.31 million shares it plans to issue.
Lastly, it approved “a quasi-reorganization to eliminate the Company’s deficit in its retained earnings account by offsetting the deficit as of December 31, 2014 against additional paid in capital.”
“The quasi-reorganization was approved in order for DFNN to sooner move into a position to declare dividends,” the company explained.
This prompted the local bourse to implement a one-hour halt in the trading of DFNN’s shares yesterday, in line with its rules on quasi-reorganization
“The Exchange will inform the Trading Participants and the investing public of further developments on the matter,” it said in a separate announcement yesterday.
DFNN shares ended yesterday’s trading at P5.48 apiece, up by 17 centavos or 3.20%. — Daphne J. Magturo
