NOW restructuring equity to clear deficit

Listed technology company NOW Corp. has approved an equity restructuring program to eliminate its accumulated deficit.

NOW said its board of directors in a special meeting on Dec. 28 approved the company’s equity restructuring plan by reducing the par value of the common shares of stock and by applying the resulting additional paid-in capital.

The firm said the equity restructuring would not reduce the number of outstanding shares and would not change a stockholder’s interest in NOW.

It said the P1 par value per share of the existing preferred shares would also not change.

“For this purpose, the board approved the amendment of article seven of NOW’s articles of incorporation to reduce the par value of common shares from P1 per share to P0.70 per share, and the resulting decrease of NOW’s authorized capital stock from P2.12 billion divided into 2.060 billion common shares with par value of P1 each to P1.442 billion divided into 2.060 billion common shares with par value of P0.70 each,” NOW said in a disclosure to the PSE.

NOW said it would seek approval from the Securities and Exchange Commission to effect the amendment of the seventh article of incorporation.

NOW Telecom, an affiliate of the publicly listed firm which is in the business of providing telecom, media, and technology service, was among the companies which were vying for the coveted third telco player spot in the country.

The company, however, backed out in submitting an actual bid in consideration of a case it filed against the National Telecommunications Commission for alleged legal violations in the new major player terms of reference.

NOW intends to leverage on business partnership opportunities with local government and entrepreneurs to provide better internet connection to the country by “democraticizing telecommunications.”