ACEN Corporation is signing a contract with its subsidiary, ENEX Energy Corporation, for the subscription of 177,544,011 non-voting preferred shares of ENEX at a par value of Php 1.00 per share.
Manila Bulletin reported that, according to ACEN, these shares would emanate from ENEX’s increased authorized capital stock, enabling the creation of non-voting preferred shares.
The energy firm added that the subscription price would be utilized to support ENEX’s operational needs and transaction costs related to the issuance of the preferred shares. Additionally, ACEN said this transaction is designed to help ENEX address its negative stockholders’ equity.
It is worth noting that the increase in authorized capital stock and the creation of non-voting preferred shares of ENEX are still subject to regulatory approval by the Securities and Exchange Commission (SEC).
ACEN’s board had approved the share subscription to ENEX in March this year, and this has been incorporated into the deed of assignment, which also included advances made by ACEN to ENEX.
ACEN received direct receivables amounting to Php 171.3 million from ENEX, while the total aggregate amount was Php 177.5 million.
ACEN stated that the share subscription involves an additional investment in a subsidiary, providing funding support for ENEX’s projects in the oil and gas sector.
ENEX is aiming to pursue upstream ventures in the country’s oil and gas industry, including exploration at its awarded petroleum blocks in the Northwest and offshore West Palawan basins.
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