Fruitas raises P20 million from sale of preferred shares to directors

Fruitas Holdings Inc. said its board has approved the issuance of 2 billion unlisted preferred shares to Lush Properties Inc., a company owned by two of the listed food and beverage company’s directors and officers.

Fruitas said Lush owners Lester Yu and Madelene Sayson will pay P20 million for the preferred shares, which are entitled to a fixed annual dividend rate of 2.5 percent. It said Yu and Sayson didn’t participate during the vote for the preferred shares sale.

The preferred shares are non-participating and non-convertible to common shares, but have voting rights. The dividends, upon declaration by the company’s board of directors, shall be paid within 120 days from the close of each calendar year.

Fruitas, which considers itself a food and beverage kiosk operator, has 720 stores across the Philippines with brands such as “Black Pearl”, “Buko Loco”, ’’Buko ni Fruitas”, “House of Fruitas”, “De Original Jamaican Pattie Shop and Juice Bar”, “Johnn Lemon”, “Juice Avenue”, “Sabroso Lechon”, ”Tea Rex”, “The Mango Farm”, “Babot’s Farm”, and “Soy & Bean”.