Xurpas forms remittance, VCE subsidiary
XURPAS, Inc. is forming a new subsidiary that will focus on remittances, money transfers and operate as a virtual currency exchange (VCE).
The mobile content provider said in a disclosure to the stock exchange on Tuesday its board of directors has approved on Monday the incorporation of CTX Technologies, Inc., which will be a wholly owned subsidiary of Xurpas.
“CTX has secured an endorsement clearance from the Bangko Sentral ng Pilipinas (BSP) with respect to its proposed primary purpose wherein it will engage as a remittance and transfer company, operating as a Virtual Currency Exchange,” it said.
It added that its new remittance subsidiary will be designed to process cryptocurrency payments.
Xurpas said it will now need the approval of the Securities and Exchange Commission (SEC) to proceed with the incorporation of CTX. Its operations may only begin after completing the BSP registration process.
“We are in a position to create and deploy more products that can add value to our company,” Xurpas President Raymond Gerard S. Racaza told BusinessWorld in a text message.
Asked how it is expected to impact the company in terms of revenue, a representative from the Xurpas said they “cannot make forward-looking financial statements yet for this endeavor.”
In a regulatory filing, Xurpas said it has three wholly owned subsidiaries as of June: Xurpas Enterprise, Inc.; Art of Click Pte. Ltd. (AOC) and ODX Pte. Ltd.
It also has stakes in eight other companies, namely Xeleb Technologies, Inc.; Xeleb, Inc.; Seer Technologies, Inc.; Codesignate, Inc.; Storm Technologies, Inc.; Pt. Storm Benefits Indonesia; Yondu, Inc. and Yondu Software Labs, Inc.
The listed company booked an attributable net loss of P137.04 million in the first half from last year’s net profit of P108.72 million. It said the decline was due to the continued fallout of revenues from its mobile consumer services business.
Shares in Xurpas closed at P2.31 apiece on Tuesday, up nine centavos or 4.05%.