Vulcan Industrial and Mining Corp. of former mayor Hilario G. Pagauitan is set to offer P550 million worth of shares in order to meet the minimum public float requirement.
The company’s board has granted approval for the offer and issuance of 550 million new shares through a private placement at a price of P1 per share.
This move is aimed at complying with the 20 percent public float requirement.
Through the subscription and issuance of new shares, Vulcan’s subscribed and issued capital stock will increase from the current 6.63 billion shares to 7.18 billion shares.
Vulcan said that a minimum of 10 percent of the total subscription price must be paid in cash upon subscription.
The remaining balance is expected to be settled within one year from the subscription date, either in cash or through property acceptable to the company.
The proceeds generated from the subscription will be utilized by Vulcan for its operational activities, business development initiatives, repayment of advances, and acquisition of mining rights.
Vulcan’s board has also approved the changing of the company’s stock symbol from VUL to ECVC.
Trading in shares of Vulcan remain suspended after its public ownership fell below the minimium requirement of 20 percent.