The Philippine Stock Exchange suspended the trading of dormant company Apollo Global Capital Inc. which is being eyed for the backdoor listing of black sand miner JDVC Resources Corp.
Apollo Global said in a disclosure to the stock exchange its board of directors approved the subscription by Hyung Rae Doo, Napoleon De Leon Jr., Garry Lincoln Taboso and Daniel Chua Go to 247.396 billion common shares in the company at P0.01 apiece, or for a total of P2.473 billion.
The shares to be issued to new investors will come from the proposed increase in the company’s authorized capital stock to P6 billion from P1 billion.
New investors will assign to the company their JDVC Resources common shares, which is equivalent to 83-percent stake in the mining firm worth P2.473 billion.
“The purpose of the transaction is to revive the business operations of, and give value to Apollo Global,” the company said.
PSE said in a notice posted on its website the share swap between Apollo Global and shareholders of JDVC Resources was covered by backdoor listing rules.
“After a review of the relevant disclosures filed by APL, the exchange deems that the above-mentioned transaction is covered by the exchange’s rules on backdoor listing. Given the foregoing, the exchange will implement a trading suspension on APL shares effective at 9 a.m. Feb. 20, 2017,” PSE said.
Shares of Apollo Global were last traded on Feb. 17 when it closed at P0.059.
JDVC Resources is a company with a mineral production sharing agreement with the government for an offshore mining stake in Cagayan involving 13,240 hectares.
The MPSA grants it the exclusive right to explore, develop and utilize the magnetite mines and associated mineral resources in the offshore areas of Sanchez Mira, Pamplona, Abulug, Ballesteros, Aparri, Buguey and Gonzaga in Cagayan.
JDVC Resources negotiated with listed firm Island Information and Technology Inc. also for backdoor listing last year. IITI even hired Abacus Capital & Investment Corp. as financial adviser for the planned partnership with JDVC Resources. The negotiations fell through.