Logistics and money transfer service provider LBC Express Holdings Inc. is raising $50 million from the issuance of convertible notes.
LBC Express made the announcement after it failed to secure the Securities and Exchange Commission’s approval to hold a P1.2-billion share sale to fund expansion.
LBC Express said in a disclosure to the stock exchange its board of directors approved the issuance of $50 million worth of convertible notes to CP Briks Pte. Ltd.
CP Briks is a special purpose vehicle owned by Crescent Point, which is a China, Southeast Asia and Australia-focused private equity and special situations investment firm. It is focused on consumer-related businesses, including apparel, retail, services, healthcare, wellness tourism and finance.Crescent Point also invests in geographies or industries when high-quality assets are available at attractive prices.
“The proceeds of the convertible instrument will be used to fund the growth of the business of the company, including capital expenditures and working capital,” LBC Express said.
The notes are convertible to shares of the company, to be issued out of the unissued portion of the company’s authorized capital stock.
The Securities and Exchange Commission and the Philippine Stock Exchange earlier rejected the P1.2-billion follow-on offering of LBC Express after it failed to disclosure material information, particularly regarding legal proceedings against its controlling shareholders.
After the SEC rejection, LBC Express said it would look at other its options, including filing a motion for reconsideration or submitting a new follow-on offering application.
LBC Express earlier said it planned to roll out 70 to 100 outlets this year in a bid to strengthen its position as the leading courier and money transfer company in the Philippines.
LBC Express serves millions of Filipinos around the globe in over 20 countries, with a network of over 1,200 outlets in addition to 5,300 partner agents.
LBC group also set up branches in various locations in North America, the Middle East, Asia Pacific, Europe and Oceania.