Ajo.net Holdings to sell overseas investments

Ajo.net Holdings Inc., a holding company with investments in property and information technology, plans to dispose of some of its investments overseas to enable it to raise cash to sustain operations amid the difficult business environment.

In a financial report filed with the Securities and Exchange Commission, Ajo.net said the company needs to divest certain non-performing assets to pursue new businesses with high-growth potentials through joint ventures or other similar arrangements.

Among the company’s foreign investments are in the British Virgin Islands-based Chikka.com Ltd. and internet holding company Incredibly EZ Corp., and California-based Bitmicro Networks Inc.

Chikka.com is engaged in a wireless application network targetted towards the worldwide mobile users with Global System of Mobile Communications (GSM) standard. It has a minority investment in Bidshot Dotcom Co. Inc., currently the most advanced Asian and Philippine online auction site that can be accessed through a personal computer and mobile devices through short messaging system.

Incredibly EZ Corp., has in its investment portfolio Bidshot Dotcom Co. Inc., a mobile communications technology auction service company.

Bitmicro was founded by a Filipino family of engineers led by Romeo Bruce, who have had extensive experience in the US automotive and other industries using high technology. It has applied for several patents to cover several generations of its products in anticipation of an increasing demand for larger data storage capacity and faster access requirements of the military, telecommunications and other industries.

Apart from selling its foreign investments, Ajo.net plans to raise capital from private placements and other sources as soon as financial market conditions improve.

To date, Ajo.net has written off its P2.4- million investment in Philippine Women’s University Incubation Center and has recognized losses from its subsidiaries, namely Qnet of P35.16 million and Broadasia Inc. of P2.3 million.

As a result, the company’s deficit at the end of December 2002 increased from P42.5 million to P103.7 million largely due to losses incurred during the previous quarters. Ajo.net incurred a net loss of P11.1 million in the second half of last year as against a net loss of P13.6 million in the same period a year earlier.

Ajo.net was incorporated on Aug. 7, 1957 under the name Acoje Oil Exploration and Drilling Co. Inc. and was then engaged in oil exploration and drilling services. The protracted slump in oil exploration activities due to poor drilling results led the company to shift its business to providing water drilling services and to real estate development.