SEC clears Prime Media’s use of paid-in capital to offset deficit

PRIME MEDIA Holdings, Inc. said it had obtained approval from the Securities and Exchange Commission (SEC) for its equity restructuring plan.

In a stock exchange disclosure on Thursday, the company said the restructuring involves applying P253 million in additional paid-in capital to offset its deficit.

Prime Media’s board approved the equity restructuring in 2024, utilizing the additional paid-in capital, it said.

Last year, the company announced plans to raise P531 million through private placements to support its expansion. 

Its board approved the share subscriptions of Valiant Consolidated Resources, Inc. and Cymac Holdings Corp., which will inject a total of P531 million. 

Valiant Consolidated will subscribe to 75 million common shares at P2.95 each, amounting to P221.25 million, to be issued from Prime Media’s unissued capital.

The company previously said Valiant Consolidated is set to subscribe to an additional 86.36 million common shares at P2.95 apiece, or P254.75 million, to be issued from the increased capital stock following a share-swap agreement with Golden Peregrine Holdings, Inc. stakeholders.

On Thursday, Prime Media shares closed at P1.75 apiece, down 12 centavos or 6.42%. — Ashley Erika O. Jose