Stock Commentary: Greenergy Obtains SEC Approval for Significant Increase in Authorized Capital

Merkado Barkada

October 12, 2021 | 8:45 am

The SEC has approved the request by green energy [GREEN 2.24] increase its authorized share capital (ACS) from 2 billion pesos (divided into 1.9 billion pesos in ordinary shares and 0.1 billion pesos in preferred shares) to 5 billion pesos (divided into 4.9 billion pesos in ordinary shares and 0.1 billion pesos in preferred shares) ).

GREEN shareholders initially authorized the GREEN board to increase the ACS “up to an amount not exceeding 10 billion pesos”.

MB RESULTS

While Mr. Tiu has an Injap Sia-like master plan full of interconnected assets from different sectors working together towards a common goal over a long period of time, it’s not very easy to gauge how the plan is unfolding, or really where he’s going, and if any of those events that happened along the way are in pursuit of that plan, distract from the plan, or have nothing to do with it.

GREEN does lead generation for DITO CME [DITO 7.51 0.94%]it starts in logistics with AbaCore [ABA 1.10 3.77%]he buys U-Pay from ABS-CBN [ABS 16.24 4.91%]he hopes to enter the Australian cannabis industry and seeks to develop “transient-oriented communities” adjacent to Makati Subway.

But also Mr. Tiu would like to make GREEN his personal holding company, which he said when he used GREEN money to buy shares of his other company, AgriNurture [ANI 4.89 2.00%].

So now that GREEN has increased its authorized capital to a level that could absolutely neutralize existing shareholders with dilution, what is GREEN going to do? Is the capital raise intended to build on one of these memorandums of understanding to develop something more tangible, or is the intention to raise funds that it can use to buy out other companies run by Antonio Tiu?

I’m just speculating here, and I don’t want to jump to overly negative conclusions from what happened, but I feel like investors don’t have much to do in trying to figure out where M Tiu goes with all this activity. If you claim to have a massive master plan but neglect to provide specific, measurable benchmarks for how you plan to execute that plan, almost anything you do can be considered a valid step in the right direction.

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Merkado Barkada’s opinions are provided for informational purposes only and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor should do their own due diligence before trading, as the facts and figures in each particular article may have changed.

Sallie R. Loera