ENEX Energy expect to achieve positive position by end-2024
By Alena Mae S. Flores – August 8, 2023, 8:15 pm
from manilastandard.net
Listed ENEX Energy Corp. said Tuesday it will undertake measures to bring its stockholders’ equity from negative to positive by end-2024.
ENEX said it intended to cause the conversion of advances made to the company parent company ACEN Corp. and certain affiliates into additional equity.
The company has total stockholders’ equity of negative P61 million and P75 million, respectively, as of Dec. 31, 2022 and March 31, 2023. ENEX targets to bring its stockholders equity to P19.9 by end-2024.
ACEN International Inc., Bulacan Power Generation Corp. and ACE Shared Services Inc. will secure approval from their respective boards to assign their receivables from ENEX to ACEN.
ACEN International, BPGC and ACES will enter into the relevant deeds of assignment with ACEN.
The outstanding advances of ACEN and BPGC and the receivable of ACES from ENEX collectively amounted to P155 million as of end-March 2023.
The advances from ACEN and ACEN International are pursuant to approved credit facilities to finance ENEX’s working capital amounting to P150 million and P6 million, respectively.
Advances from ACEN and ACEN International are expected to increase as ENEX continues its day-to-day operations and is forecasted to be up to P175 million by March 2024.
Meanwhile, ENEX will obtain board approval for the amendment of its articles of incorporation to re-classify up to 500 million unissued common shares with a par value of P1 per share into up to 500 million redeemable preferred shares with a par value of P1 apiece.
ENEX will also obtain approval for the subscription by ACEN to, and the issuance to ACEN of, up to 177.5 million RPS to be issued out of the reclassified unissued common shares in exchange for the assignment by ACEN of its advances to the company, worth of ACEN advances into RPS in the amount of P175 million, and up to P2.5 million worth of RPS in exchange for cash tocover for transaction costs in relation to such conversion of ACEN advances into equity of the Company.
ENEX said it would also continue to find options for de-risking its projects, namely Service Contract 55 and the proposed liquefied natural gas project under Batangas Clean Energy, to ensure positive stockholders’ equity moving forward.
