Xurpas Inc. is getting a P100-million fresh capital infusion from Nico Jose Nolledo, one of the company’s three founders, through a subscription to new common shares.
In a disclosure to the Philippine Stock Exchange, the firm said the fresh capital infusion will primarily be used for the expansion of Xurpas' core enterprise business, specifically the IT staff augmentation business.
The fresh funds will also be used for employee benefits enhancement, research and development, the upgrade and replacement of equipment, and general corporate purposes.
Xurpas said Nolledo’s subscription price will be based on Xurpas’ 30 day weighted average share price wherein the 25 days prior to signing date and the five days after signing date will determine the calculation.
The subscription price is subject to 5 percent premium, and shall also have a floor price of P0.55 per share, said the Company.
The Subscription Agreement was signed on January 20, 2022. Nolledo will pay the total subscription price of P100 million within 30 days.
Xurpas shares resumed trading at the PSE last January 17 after a 16 month suspension following the collapse of plans by the Wavemaker group of the US to use it as a backdoor listing vehicle.
“The past two years have been quite challenging, all the more so due to the ongoing pandemic. But there have also been opportunities for growth, as many companies try to accelerate their digital transformation and other IT initiatives,” said Xurpas President Alexander Corpuz.
He added that, “We have made meaningful progress in rebuilding our revenue base by focusing on staff augmentation. Nix (Nolledo’s) continued support through this infusion will go a long way towards allowing us to further grow the business, while strengthening our balance sheet.”