On 27 August 2021, Dito CME received the approval of the Securities and Exchange Commission of its increase in authorized capital stock from Php 2,800,000,000.00 divided in 2.8 Billion common shares at Php 1.00 per share to Php 40,000,000,000.00 divided into 40 Billion common shares at Php 1.00 per share. The approval of the increase in authorized capital stock also carried with it the approval of the Share-Swap Transaction between Dito CME and Udenna Corporation wherein Dito CME was to issue 11,200,000,000 to Udenna Corporation in exchange for 100% of the issued and outstanding capital stock of Udenna CME Holdings Corp. Thus, Dito CME issued 11,200,000,000 common shares to Udenna Corporation pursuant to the approval of the share-swap transaction.
In addition, Dito CME, pursuant to its Board approval on 26 August 2021, has issued an additional 35,000,000 shares to an unrelated subscriber in order to comply with the minimum 20% public float for a backdoor listing. Thus, the shares issued to Udenna Corporation and the shares issued to the unrelated subscriber has increased the total issued and outstanding shares of Dito CME to 14,035,000,000 common shares.
Due to the above transactions, the resulting public ownership of Dito CME has changed to 20.02% of its issued and outstanding capital stock.
Please note that the SEC's approval of the increase in the Company's authorized capital stock is subject to conditions set forth in the Guidelines Covering the Use of Properties that Require Ownership as Paid-Up capital of Corporations adopted by the SEC on 15 November 1994, and as amended on 8 August 2013, per SEC Memorandum Circular No. 14, series of 2013. Further, the 11,200,000,000 shares issued to Udenna Corporation and the 35,000,000 shares issued to the unrelated subscriber have not yet been listed. |