NOW Corp. said it has raised P269.5 million in additional funding through the subscription of Velarde Inc. on a combined common shares and preferred shares.
NOW said Velarde Inc. is subscribing to 102 million common shares at P2.25 per share, equivalent to a 5.75 percent stake in the company post-subscription.
Velarde Inc. at the same time has subscribed to 60 million redeemable, convertible, cumulative preferred shares, with one free detachable warrant for every preferred share subscribed at P1 per share.
The preferred shares may be converted to common shares at any time from the first year anniversary from the issue date of the preferred shares until the fifth year anniversary from issue date, at a conversion price of P2.25 per share.
The warrants meanwhile are exercisable after the second year anniversary, at a price of P2.25 per common share.
NOW said the proceeds of the sale will be used as additional equity infusion in its affiliate, NOW Telecom Co. Inc.