XURPAS, Inc. is planning to convert into equity around P136.52 million worth of its founders鈥 advances to the listed technology firm.
In a disclosure to the stock market on Monday, the company said the move would provide Xurpas with capital to fund its pivot toward the enterprise market.
The advances came from the company鈥檚 co-founders Nico Jose S. Nolledo and Fernando Jude F. Garcia who offered the amount from 2017 to 2019.
鈥淲e have shown steady progress since we shifted our focus to the enterprise segment, and now have distinct products and services catering to customers both in the Philippines and increasingly, overseas,鈥 said Mr. Garcia, who is also the company鈥檚 chief technology officer and treasurer.
Xurpas said the conversion of the advances to equity would improve and strengthen its balance sheet, 鈥渁nd reflects the founders鈥 confidence in the corporation鈥檚 ability to further expand its business.鈥
It said the final conversion price would be determined within 30 days subject to the conditions that it would be above market price and supported by a fairness opinion from a qualified third-party authority.
鈥淲e continue to grow not only our core software development and [information technology] staff augmentation businesses, but have introduced pre-packaged business solutions for [small and medium enterprises], Mr.聽Garcia said.
He also said Xurpas plans to offer artificial intelligence consulting and development services to local companies.
The company is set to submit an application to the Securities and Exchange Commission to confirm the transaction by securing a confirmation of valuation.
鈥淭he listing of the shares will also be subject to an application with the Philippine Stock Exchange,鈥 it said.
Xurpas shares went up by 1.92% or P0.005 to P0.265 apiece on Monday. 鈥 Adrian H. Halili
