The Board of Directors of NOW Corp. (PSE: NOW), at a special meeting held on December 28, 2018, approved the company’s equity restructuring plan by reducing the par value of the common shares of stock of the company and by applying the resulting additional paid-in capital to eliminate its accumulated deficit.
The equity restructuring will not reduce the number of outstanding shares and will not change a stockholder’s interest in NOW. Furthermore, the PhP1.00 par value per share of the existing preferred shares will not change.
For this purpose, the board approved the amendment of Article Seventh of NOW’s Articles of Incorporation to reduce the par value of common shares from One Peso (PhP1.00) per share to seventy centavos (PhP0.70) per share, and the resulting decrease of NOW’s authorized capital stock from PhP2,120,000,000.00 divided into 2,060,000,000 common shares with par value of one peso (PhP1.00) each to PhP1,442,000,000 divided into 2,060,000,000 common shares with par value of seventy centavos (PhP0.70) each.
NOW will seek approval from the Securities and Exchange Commission to effect the amendment of the Seventh Article of Incorporation. Disclosure to the Exchange of such event shall be promptly made as soon as said approval from SEC has been obtained.