Philab Holdings secures P400-million financing package from Altus Capital

PHILAB HOLDINGS Corp. has secured a P400-million financing from Altus Capital Corp., an affiliate of the World Bank Group’s International Finance Corp. to augment its working capital.

In a statement issued on Tuesday, the biotechnology firm said the financing package will support its capacity to carry out contracts with various government agencies for the rollout of medical and education kits nationwide.

Philab Holdings had disclosed earlier its intention to enter into loan agreements cumulatively worth P437.2 million and launch a follow-on offering of 500 million common shares for a total of P3.38 billion, following the reverse takeover of Philab Industries, Inc. by Alterra Capital Partners, Inc.

The company did not disclose the details of the financing it secured from Altus Capital.

In a special meeting in January, however, the board of directors only authorized loans carrying a 5% interest per annum and a flat- rate term premium of 10%, among other terms and conditions.

The fund- raising activities follow the listing of Philab Industries on the Philippine Stock Exchange through the backdoor.

To facilitate the listing, Genomics, Inc. and Philab Industries President Hector Thomas A. Navasero acquired 67% of the issued and outstanding voting stock of Alterra from Conrado Rafael C. Alcantara, Alfonso S. Anggala and Star Alliance Securities Corp. in October 2016.

Alterra would later acquire 351,740 shares or 93.48% of the outstanding capital stock of Philab Industries for P2,445 apiece in December and change its name to Philab Holdings the following month.

The reverse takeover provided Philab Industries access to the equities market just when it looks to build a Genomics Business Process Outsourcing hub for a next generation sequencing Facility in Asia, focused on wellness, education and health care.

“They are a prime example of what we look to invest in: pioneering companies with products and services that have profound impact in the communities they serve,” Altus Managing Director Pavan C. Gidwani was quoted as saying in the statement.

The company has provided laboratory equipment as well as research in the Philippine health care and education market since 1959. As of December 2016, Philab has bagged P3.2 billion worth of contracts from the Department of Education, the Department of Health and the National Institutes of Health at the University of the Philippines Manila.

Shares in Philab Holdings closed 34 centavos or 4.53% lower at P7.16 apiece on Tuesday. —