MJC Investments Corp. (MJIC) is aiming reported fix its capital deficit by converting P2.43 billion in deposits from shareholders into equity.
Based on the updated business plan submitted to the Philippine Stock Exchange MJIC said it intends to bring its stockholders equity from negative to positive by creating additional paid-in capital (APIC) using the P2.42 billion advances from 18 existing shareholders.
MJIC said participating stockholders expressed willingness to convert the stockholders advances into APIC without issuance of new shares to cure the company’s negative equity position which stands at P2.27 billion as of end September 2024.
“The path to pursue the creation of APIC without issuance of news shares instead of converting the stockholders advances into equity via private placement was adopted to achieve the objective of wiping out the capital deficit of the corporation sooner without diluting the minority,” MJIC said.
The proposed creation of APIC will be presented to shareholders for approval in January 2025.
Meanwhile, MJIC also reported that its external auditors are finalizing the 2022 and 2023 audited financial statements of the company.
