Top Line Business Development Corp. said its board of directors has approved the reclassification of 800 million unissued common shares into preferred shares, both with a par value of P0.10 per share.
In a disclosure to the exchange, the Cebu-based listed company said the move is aimed at providing greater flexibility in future share issuances, as the company positions itself for strategic growth and financing options.
The reclassification will require amendments to the company’s Articles of Incorporation and will be presented to stockholders for approval in a forthcoming special stockholders’ meeting.
The plan is also subject to regulatory approval by the Securities and Exchange Commission.
Details regarding the terms and conditions of the future preferred share issuance are still being finalized. Top Line said it will disclose the full terms once they are approved by the board of directors.
Top Line currently has 10.7 billion listed common shares. Listed shares are now trading at P1.43, at the higher end of its recent trading range of P0.28 to P2.00. The approved reclassification covers unissued shares and does not impact existing shareholdings.
The move reflects a growing trend among listed firms to recalibrate their capital structures, allowing room for instruments such as preferred shares that can offer more tailored financing solutions without immediate dilution of control or earnings.
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