DFNN to wipe out P643M deficit

TECHNOLOGY solutions provider DFNN Inc. is cleaning up its books to wipe out P643 million in capital deficit and become capable of declaring dividends soon.

In a disclosure to the Philippine Stock Exchange on Monday, DFNN said its board had approved the issuance of 8.3 million common shares to various existing shareholders by virtue of conversion of loans into equity.

“The conversion is demonstrative of the shareholders’ strong support for and belief in the long-term growth of DFNN,” the disclosure said.

The board likewise approved to list on the PSE some 91.28 million common shares issued out of DFNN’s authorized capital stock as well as the 8.3 million new shares to be issued as part of the loan to equity conversion.

Likewise approved was a quasi-reorganization to eliminate the company’s deficit in its retained earnings account by offsetting the deficit as of December 31, 2014 against additional paid- in capital.

“The quasi-reorganization was approved in order for DFNN to sooner move into a position to declare dividends,” DFNN said.