THE Philippine Stock Exchange, Inc. (PSE) won’t raise the trading suspension on stocks of Xurpas, Inc. after determining that it has intended a P170.7-million purchase of venture capital company Wavemaker Partners US qualifies as a non-profit listing.
In a note on its website, the bourse operator stated that the backdoor list rules would apply to this organization’s projected issuance of 1.71 billion common stocks to Wavemaker US, and therefore, has demanded more records from the business.
It chose to maintain the trading suspension over the firm’s shares until such compliance is met, which has been started since Sept. 18.
“Following a careful review of their firm’s submissions and disclosures, the exchange deems the foreign exchange transactions are insured by the exchange’s Rules on Backdoor Listing,” it stated.
“Said conclusion is based on the collection of trades effectively leading into an acquisition with a listed firm (i.e., Xurpas) of an unlisted company (i.e., Wavemaker Group and its associated entities) and the order from the Wavemaker Partners of all Xurpas stocks resulting into a significant shift in Xurpas’ unemployment arrangement, amongst others,” it added.
The stocks are priced in 10 centavos each. It stated it would find some P 170 million cash from stocks’ issuance to Wavemaker US, which will be used to purchase Wavemaker Group.
“It’s in this aspect that the trade is constrained from raising the trading suspension to the organization’s shares prior to the essential information are filed and due compliance with all the applicable legislation, regulations and rules has complied,” that the PSE explained.