Chelsea Logistics boosts capital to P3.5B

Listed Chelsea Logistics and Infrastructure Holdings Corp. is increasing its authorized capital stock to P3.5 billion from P2 billion.

In a disclosure to the Philippine Stock Exchange on Monday, the Dennis Uy-led group said its board of directors green-lighted the addition of 1.5 billion common shares priced P1 apiece.

“Udenna Corp. will subscribe to 375,000,000 common shares, which is 25 percent of the increase in common shares, at the price of P3.26 per share with reference to the 90-day VWAP (volume-weighted average price),” Chelsea Logistics said.

Meanwhile, its board also approved the subscription of 500,000 preferred shares through private placement to Global Kingdom Investments Ltd. at P1,000 per share.

Chelsea Logistics said the issuance is an exempt transaction under Republic Act 8799 or the Revised Securities Regulation Code.

The group intends to utilize the proceeds from the approved transactions to finance its current and future projects as well as for additional working capital.

Chelsea Logistics saw a P345 million net loss in the first quarter of 2020, from a net income of P139 million in the same stretch last year due to the impacts of the Taal Volcano eruption and the enhanced community quarantine to contain COVID-19.

In an earlier disclosure, the group said it is expecting several investments to generate cash flow, including the delivery of two vessels slated this year, the completion of its 2.5-hectare logistics warehouse in the first quarter of 2021, and several infrastructure seaport and airport modernization projects in Davao which it said will help create additional revenue streams.