LISTED company IP E-Game Ventures, Inc. said it plans to invest P300 million as the minimum capital for setting up its real estate investment trust (REIT) company.
“IP E-Game will fund its investment into the REIT company through a combination of equity and convertible debt and other instruments,” IP E-Game said in a disclosure to the stock exchange on Wednesday.
“The company plans to enter into convertible debt instruments with investors that will finance the incorporation of the REIT,” it added.
The incorporation of the REIT company will be completed by the end of the third quarter, the listed company said.
The planned entry into the REIT business is expected to “expand the company’s activities into real estate-related investments.”
“These activities will also potentially increase the amount of convertible debt and equity investments of the company in the foreseeable future,” IP E-Game said.
“This transaction envisions to provide the company with recurring revenues and profits. Upon realization, this will translate to an improved financial performance for the company and aims to improve shareholder value,” it added.
On June 20, IP E-Game’s board approved the company’s plan to engage in the REIT business with the creation of a company.
On May 3, 2017, the Philippine Stock Exchange suspended trading of IP E-Game shares due to failure to comply with reportorial requirements.
The company’s shares were last traded on May 2, 2017, closing at P0.0094 apiece. — Revin Mikhael D. Ochave
