THE PHILIPPINE Stock Exchange has approved a 10-day trading suspension on Philweb Corp. until Aug. 23 as the company grapples with gaming regulators’ decision to terminate the company’s license as service provider to a network of e-games cafes.
Philweb is now winding down operations as a service provider to the Philippine Amusement & Gaming Corp. (Pagcor)’s e-Games network as its intellectual property licensing and management agreement (IPLMA) contract has not been renewed.
The company sought a trading suspension until the end of the month but the PSE approved only a 10-day suspension starting Wednesday (Aug. 10), the day that the IPLMA contract with Pagcor expired.
Trading of Philweb shares will resume on Aug.24 at 9 a.m.
The trading suspension was requested by the company itself “due to material uncertainties and unverified material information affecting the business of PhilWeb Corp. that will materially affect the investing public and in order to prevent a false or disorderly trading of PhilWeb shares.”
“This will ensure that PhilWeb shares are not being traded on an uninformed basis,” the company said.
After meeting with Pagcor on Tuesday, PhilWeb president Dennis Valdes has announced that the company would unwind operations as a service provider to PAGCOR’s e-Games network due to the expiration of its IPLMA.
After consulting the majority shareholder Roberto V. Ongpin and other shareholders and directors of PhilWeb, PhilWeb called for an emergency meeting of all PhilWeb stockholders, e-Games operators as well as PhilWeb directors and employees at 4 PM on Thursday (Aug.10) at the 4th floor function room of The City Club at Alphaland Makati Place.
The meeting was called “in order to properly appraise all stakeholders about the future of PhilWeb.”
Pres. Rodrigo Duterte earlier cited Ongpin as a prime example of an “oligarch” whom he would bring down under his term.