Danessa Rivera (The Philippine Star)
- May 13, 2019 - 12:00am
MANILA, Philippines — Listed Basic
Energy Corp. is seeking to double its authorized capital stock to allow
potential strategic investors to invest in the company and to secure funds in
the future.
Basic Energy said its board of
directors approved the increase its authorized capital stock from P2.5 billion
to P5 billion, comprising 20 billion shares with a par value of P0.25 apiece.
The proposed capital hike will allow
potential investors to come in and provide flexibility to raise funds for new
and expansion projects at a later time.
Basic Energy said a potential
investor is currently conducting legal and financial due diligence review.
“The potential investor is currently
undertaking due diligence review of the company that covers legal, corporate,
financial, technical, tax, labor and other aspects of the operations of the
company, and upon completion thereof, the parties shall agree upon and
executive the definitive agreements, which shall include, among other terms and
conditions, the details of the share subscription of the investor,” Basic
Energy said.
Basic Energy is developing several
geothermal projects namely the Mabini Geothermal Service Contract in Batangas,
Mt. Mariveles Geothermal Project in Bataan and Mt. Iriga Geothermal Project in
Albay.
Recently, two of its geothermal
contracts were terminated by the Department of Energy, namely the East Mankayan
and West Bulusan geothermal projects for failing to complete the
pre-development of the sites.
Apart from pursuing geothermal
developments, it is also eyeing opportunities in other renewable energy
projects, such as solar, wind and biomass energy, and is currently undergoing
due-diligence studies and work.
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