Philodrill [OV 0.01, up 8.3%; 232% avgVol] [link] notified the exchange that its board of directors voted to extend the 50% payment period for a stock rights offering (SRO) that it began in January 2009 until December 2025. The original stock rights offering allowed OV shareholders to purchase one SRO share for every four OV shares owned for P0.01/share. Buyers would need to pay at least 25% of the subscription price at the time of subscription, with a follow-up 25% payable after 60 days from the end of the offer period. The remaining 50% of the balance was “upon call by the Board of Directors not later than Dec. 31, 2009.” According to OV, the original 50% balance payment deadline was extended beyond the deadline because “the Galoc field started producing”, OV “had a positive cash flow”, and “there was no need for additional funds to cover operating expenses.” OV said that the board still does not see a need for the money, so it has extended (again) the deadline for the subscription call period until December 31, 2025.
MB bottom-line: OV hasn’t been above the SRO price since the “basurapalooza” days between late 2020 and early 2021, when several hyper-speculative mining firms mooned regularly during a period of bored mania brought on by Duterte-era lockdowns and FOMO from watching the high-flying US markets and crypto pump. This disclosure is a copy/paste find/replace of the one that it produced on December 20, 2023, which is itself a copy/paste find/replace of the one that it produced on December 22, 2022. This is a nothingburger. A quick check at OV’s most recent Quarterly Report even says that if OV’s cash position was insufficient, collecting on these subscriptions would be the fourth thing that it tries, behind collecting accounts receivables, selling a portion of its assets/investments, and generating cash from loans/advances. That’s how unserious the company is about collecting on these subscription debts.
Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.