SEC approves DFNN equity restructuring

DFNN, Inc. has obtained approval from the Securities and Exchange Commission (SEC) for its equity restructuring plan aimed at wiping out a deficit amounting to P691.34 million.

In a disclosure to the stock exchange on Wednesday, the information technology solutions provider said it received approval from the SEC to undergo an equity restructuring instead of its initial disclosure announcing a quasi-reorganization.

The equity restructuring will apply to the company’s additional paid-in capital (APIC) of P727.36 million to wipe out its deficit of P691.34 million as of Dec. 31, 2016.This leaves the company an APIC of P36 million.

This does not affect the company’s Authorized Capital and does not entail any issuance of new shares. The same simply wipes out our deficit with the use of APIC as of Dec. 31, 2016, and would still leave an APIC of over P36 million, the company said.

The certificate of approval issued by the SEC further says that the remaining APIC should not be used to wipe out the company’s future losses without garnering approval from the commission.

Incorporated in 1999, DFNN engages in the provision of proprietary corporate solutions designed to maximize its client’s existing computer infrastructure. It also develops wireless solutions for business operations requiring effective and 24/7 reliable operations.

Shares in DFNN gained 70 centavos or 7.98% to close at P9.47 apiece on Wednesday. — Arra B. Francia

Source: http://www.bworldonline.com/content.php?section=CorporateNews&id=148518