The trading suspension was lifted a day after the SEC approved the extension of Vulcan’s corporate life for another 50 years starting Jan. 12, 2003.
Last Monday, the PSE suspended stock transactions on Vulcan as it had yet to seek the corporate regulator’s approval for the extension of its corporate existence – as stated in the amended articles of incorporation – which expired on Jan. 12.
Vulcan, controlled by the group of Alfredo Ramos, owner of the National Bookstore chain, is engaged mainly in oil and mineral exploration projects, although it is still in the process of discovering oil and gas in commercial quantities.
However, one of its successful ventures is the concrete aggregates project in Rodriguez, Rizal which was spun off into a joint venture company Vulcan Materials Corp., already on its 10th year of rock aggregates quarrying, crushing and marketing.
VMC is 51 percent owned by Vulcan, with the remaining 49 percent controlled by local construction giant D.M. Consunji Inc. (DMCI), which also serves as its captive market.
Aside from the corporate life expiration, the PSE also suspends trading in listed issues for non-compliance with the exchange’s reportorial requirements, particularly in the non-submission of audited financial reports on a quarterly or yearly basis; failure to pay the corresponding fines or fees; or other development that would have a material impact on the company’s operations.
A trading suspension is a heavier form of penalty than a trading halt, wherein the exchange merely stops trading in a listed company once its price level breaches the mandatory trigger points: a 50 percent price increase or a 40 percent price drop. Also, the PSE halts trading pending a company’s written clarification of the unusual price movements of its stocks or news reports that involves material information regarding the company.