In a disclosure to the Philippine Stock Exchange, (PSE), Boulevard said the new capitalization will be divided into two billion common shares with a par value of 10 centavos.
Boulevard said its stockholders had approved the proposed increase in authorized capital stock from P100 million.
Also approved by the company’s shareholders is the acquisition of a piece of property in the province of Oriental Mindoro from Boulevard chairman and president Jose Marcel Panlilio, who will be paid shares in Boulevard, not exceeding 500 million common shares at 10 centavos.
Boulevard said an appraisal company accredited by the PSE will determine the fairness of the acquisition of the property.
The company will groundbreak the four-hectare Fridays Puerto Galera next year.
After its capital has been increased, Boulevard will conduct a stock rights offering of up to 500 million common shares to finance the construction of the resort and additional working capital requirements for its technology business in subsidiaries Alliance Technologies Corp. (ATC) and Avrion Systems Inc.
The company’s board also authorized the acceptance of private placement from new investors, the proceeds of which shall also be used for Boulevard’s expansion plans.
Boulevard has set aside P141 million for its tourism-related businesses and information technology. About P20 million to P30 million has been allocated for the refurbishment of Fridays Boracay Island Beach Resort in Boracay which will increase the number of rooms to 61 over a five-year period from the current 47.
ATC is a Philippine distributor of telephony system products of Avaya Communications, an affiliate of Lucent Technologies Corp. It was the original partner of AT&T before it spun off Lucent Technologies in the early 1990s.