Stock News 2010: Pancake converts P220-M worth of notes to 20% equity

MANILA, Philippines – Pancake House, Inc., has issued shares equivalent to 20.67 percent of its outstanding capital to two creditors through the conversion of five-year convertible notes amounting to P220.48 million.

In a disclosure to the Philippine Stock Exchange, Pancake House said this is in line with the terms of the investment agreement it signed with Aureos Southeast Asia Fund, L.L.C. and Plantersbank Venture Capital Corp. for SME's, Pancake House Holdings Inc. and Martin Lorenzo in October 21, 2005.

The firm said the remaining five-year convertible notes of the corporation issued on October 28, 2005 were mandatorily converted into 45.16 million common shares with par value of P1 per common share out of the corporation's authorized but unissued capital stock.

The shares were swapped at the conversion price of P4.485030 per common share and credited as fully paid and non assessable to Aureos (P151.9 million) and Grand Prime International Limited (P50.63 million).

The conversion of the notes to common shares resulted in Pancake House having a total issued and outstanding capital stock of P237.8 million divided into 237.8 common shares with P1 par value.

http://www.mb.com.ph/node/290279/pancake-convert