DFNN board OKs capital stock hike

DFNN Inc. said Monday its board of directors had approved the increase in its authorized capital stock to P1.0 billion to enable the issuance of additional shares.

The board, in a meeting last Friday, greenlit an amendment to the company’s articles of incorporation (AOI) proposing a hike in capital stock from P500 million, a move that was previously approved in 2017, DFNN told the stock exchange.

The software firm said it was also planning to issue up to 500 million common shares to potential investors as a “subscription to the increase.”

Under the proposed amendment to its AOI, DFNN’s capital stock will consist of 900 million common shares and 100 million preferred shares, which both have a par value of P1.0 per share.

“[The] creation of preferred shares, which shall be non-voting, non-participating, not convertible into common shares, entitled to a coupon rate not exceeding 12 percent per annum, redeemable at the option of the corporation, and shall have such other rights, preferences, restrictions, and qualifications as may be fixed by the [board] at their issuance and authority to issue options, warrants, and other forms of securities,” the amendment states.

In a separate disclosure, DFNN said the Bureau of Internal Revenue had issued a certificate authorizing registration (CAR) in relation to the sale of its wholly-owned unit, Nico Bayan Inc., to Double Crown Holdings Corp.

Last September, the board approved the divestment from the offshore gaming subsidiary. Following the execution and signing of the deed of absolute sale, the company applied for the issuance of CAR, a requirement to finalize the disposition of shares.

DFNN subsidiaries include Interactive Entertainment Solutions Technologies and PGI Systems Pte. Ltd., Securities and Exchange Commission data showed.

The company’s share price rose by 8 centavos, or 2.68 percent, to P3.07 on Monday.