(Last Updated On: October 7, 2022)
PHA yesterday disclosed in PSE Edge that it has receive a notice of Writ of Preliminary Attachment (WPA) from Nuovo Gran CT Inc. (NGCTI).
A writ of attachment (WPA) is a form of prejudgment process in which a court orders the attachment or seizure of property described in the writ
There is an allege NGCTI’s application for a Writ of Preliminary Attachment (WPA) against the properties of SquidPay Technology Inc. (SPTI) and Marvin C. Dela Cruz (MDC). It alleges that this has been granted by the Regional Trial Court, Manila, Branch 45 on September 28, 2022.
“NGCTI’s WPA application allegedly includes SPTI and MDC’s shares of stock in PHA, as security for NGCTI’s claim of Php100.0 Million against SPTI and MDC. Based on the copy of the Order, NGCTI entered into a Convertible Loan Agreement on December 14, 2020 with Marvin C. Dela Cruz/SquidPay Technology, Inc. for Php100.0 Million, with a maturity date of June 14, 2022, 18 months from the execution of the contract.”
“The loan may be paid through PHA shares should NGCTI exercise said Conversion Right. NGCTI served a Conversion Notice to exercise the right pursuant to the Conversion Agreement. These were not heeded, and SPTI failed to pay the loan on its maturity date of June 14, 2022”
NGCTI is notifying PHA and requesting assistance for the implementation of the corresponding WPA through the levy of the PHA shares in favor of NGCTI.
“As previously disclosed, on October 29, 2020, PHA entered into a Memorandum of Agreement (MOA) with an investor group led by Marvin Dela Cruz for the equity infusion through a subscription of a total of 2,803,030,303 shares (the “Subscription Shares”) or up to 55% ownership in PHA.
Subscription to these shares will be at Php0.33per share for a total consideration of Php925.0 Million, of which Php300 Million will be in cash and the balance of Php625 Million will be via a combination of cash and/or infusion of Squidpay Technology Inc (SPTI) shares over a period of 2 years”
“On November 17, 2021, the PHA Board approved the acquisition of thirty-three percent (33%) of SquidPay Technology Inc. (SPT) for Php561 Million equivalent to two hundred sixty-four million (264 million) existing and outstanding shares of SPT owned by the group led by Mr. Marvin Dela Cruz and will be subject to final PHA Board approval. The funding will come from the Php625 million subscription payable by the group in accordance with the abovementioned MOA, with the deadline of October 29, 2022 for the subscription”.
Share prices of PHA dropped by more than 13% at the opening of the day for market trading. Price bounce and is currently down by -9% as of the time of writing.