Mining firm completes capital restructuring

Atlas Consolidated Mining and Development Corp. said Wednesday it had completed its equity restructuring.

As such, the listed miner said it was set to issue shares to SM Investments Corp. (SMIC), which opted to get a stake in Atlas under a loan conversion arrangement.

The restructuring also enables Atlas to set aside funds for stockholders’ dividends, the firm said.

In a disclosure to the Philippine Stock Exchange, Atlas said the Securities and Exchange Commission had approved the increase in its authorized capital stock from P20 billion to P30 billion, the subsequent decrease in the par value of its shares of stock from P10 per share to P8 per share, and the full elimination of its accumulated deficit of P12.7 billion through the application of its additional paid-in capital.

“As previously reported, the increase will result in the issuance of 273,098,160 Atlas shares of stock to SM Investments Corp. as a subscriber,” Atlas said. Following the issue, the outstanding capital stock of Atlas will consist of 2,072,589,788 shares. No other movement in the outstanding capital stock of Atlas will ensue from the equity restructuring, the miner said.

Atlas said the restructuring also enabled it to accrue retained earnings from net income that might be set aside for stockholders’ dividends.

Atlas also advised that the change in the par value of its shares would not yet be reflected on the PSE’s trading system pending submission by the corporation of the procedures on updating its stock certificates, in accordance with the bourse’s policy on updating of stock certificates. The exchange will inform the public of developments, Atlas said. Riza T. Olchondra