Business World Online
Posted on September 22, 2011 10:20:46 PM
GREENERGY HOLDINGS, Inc. will issue 100 billion warrants convertible into bonds to raise funds for its power projects as it formalizes its exit from the semiconductor industry, the firm disclosed to the bourse yesterday.
The company is seeking approval from its stockholders “to issue the debt papers relating to 100 billion common shares at a strike price of P0.01 apiece with a term of five years.”
“The proceeds from the warrants will be used to fund the company’s projects in energy,” Lyra Gracia Y. Lipae-Fabella, Greenergy corporate information officer, said in a telephone interview.
The company is seeking the approval of stockholders to register the warrants with the Securities and Exchange Commission.
Trading of its stocks was halted for an hour yesterday to give way to the announcement.
Greenergy, formerly MUSX Corp., decided to change its business focus to energy projects last year.
It took the initial steps to move into the energy sector when MUSX bought Total Waste Management Recovery System, Inc. in June.
In line with this shift in business strategy, the company yesterday said it has moved to formally sign off on its its foreign subsidiaries, the same disclosure showed.
“[The board approved the] execution of the deeds of assignment relating to the divestment of foreign subsidiaries, namely: MUSIC Semiconductors, Inc., Musem Electronic N.V. and Protelcon, Inc., the divestment of which was approved by the stockholders on December 23, 2010,” Greenergy said.
The company divested its 61% interest in MUSIC Semiconductors and likewise sold its interest in the other subsidiaries.
Greenergy is planning to put up at least 1,000 megawatts (MW) of wind power facilities in the country in the next 10 years.
The company is looking to infuse $1.3 billion for the renewable energy projects.
It is allotting up to $200 million for wind energy ventures but is also interested in biomass, solar power, geothermal energy and hydrolectric power projects, according to earlier reports.
It had formed a joint venture with Chinese firm Tianjin Tinabao Investment and Development Corp. to put up the renewable energy projects which are now under the planning stage.
For the first half of the year, Greenergy’s net loss widened to P5.4 million from P1.5 million in the same period last year.
Shares of Greenergy closed unchanged yesterday at P0.012 apiece. -- Emilia Narni J. David
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