Solar Philippines Nueva Ecija Corporation (SPNEC) is accelerating its timetable for implementing 4 GW of developments from Solar Philippines (SP), paving the way for the earlier filing of its planned stock rights offering (SRO).
SP has spent years developing over 10 GW of projects, which are subject to SP’s share swap with SPNEC and are reserved for joint ventures (JV) with various companies.
This includes over 4 GW of developments reserved for its JV with Prime Infra, Terra Solar, for which SP is preparing land and permits that would form part of its investment in these projects.
Rather than wait for the effectivity of the increase in authorized capital stock (ACS) and issuance of new shares in exchange for SP’s shares in its JV projects, and in line with approvals already obtained for these, SP would grant SPNEC the option to accelerate the development of the project site using the proceeds of an SRO. This would support SPNEC in making the first of these projects construction-ready by the end of 2023, so that SPNEC may benefit from these sooner and significantly increase its capacity.
Currently, SPNEC has an ACS of 10 billion shares, of which 8.124 billion shares are outstanding and 1.876 billion are unissued. Pursuant to the SPNEC board’s February 14 approval, the company is finalizing the terms of the SRO, which it now plans to file based on its current unissued ACS, for a target to conduct the SRO in June 2022, subject to the PSE rule that a company can only conduct a new offering after 180 days from its IPO.
In parallel, SPNEC is processing its increase in ACS to 50 billion shares as approved at its March 7 Stockholders’ Meeting, which would be for further share issuances such as private placements and the share swap but not a requirement for this SRO.
“We note the feedback of our public shareholders who want us to accelerate our business plan, ahead of the consummation of the increase in ACS and share swap. As such, we are preparing SPNEC to accelerate the development of our largest projects, from the proceeds of an earlier filed SRO, given the importance of speed in developing projects to meet the growing demand for solar in the Philippines,” said Solar Philippines founder Leandro Leviste.
