Music plans to raise between P60 million and P90 million in additional capital from the issuance of new shares to fund product engineering and development.
The issuance of new shares will come from the firm’s increase in capital stock following a quasi-reorganization of its capital structure.
The company will set aside six-million share options from the increase in the authorized capital stock to be granted and distributed upon recommendation of the company’s compensation committee.
The quasi-reorganization is in line with Music’s plan to absorb the operations of wholly-owned subsidiary Music Semiconductors Phils. Inc. (MSPI).
In view of this, the firm will change its name to Music Semiconductors Corp. and amend its primary purpose to manufacturing from that of a holding company.
Music said its planned merger with MSPI is subject to the approval of its stockholders and the relevant regulatory agencies.
Music was formerly Music Semiconductors Corp., whose name is an acronym for multi-user specialty integrated circuits. It was incorporated in the Philippines in Jan. 1992 as a subsidiary of MUSIC NV, its Dutch parent.
In Nov. 1993, Music Corp. became the parent company as a result of the acquisition of a major stake in the company by Asian investors and an exchange of shares by existing shareholders.
Music is an investment holding company specializing in identifying key "early state" companies in the networking infrastructure, telecommunications and Internet markets and developing them into mature investments in these communication industry segments.