Greenergy gets SEC approval for big authorized capital stock increase

The SEC approved the application by Greenergy [GREEN 2.24] to raise its authorized capital stock (ACS) from P2 billion (divided into P1.9 billion in common shares and P0.1 billion in prefs) to P5 billion (divided into P4.9 billion in common shares and P0.1 billion in prefs).

GREEN’s stockholders had originally authorized GREEN’s board of directors to increase the ACS “to an amount not exceeding P10 billion”.

MB BOTTOM-LINE

While Mr Tiu has an Injap Sia-like masterplan full of interconnected assets from different sectors working together toward a common end over a long period of time, it’s not very easy to evaluate how the plan is going, or really where it’s going, and whether any of these events that have happened along the way are in furtherance of that plan, distract from the plan, or are completely irrelevant to it.

GREEN is doing lead generation for DITO CME [DITO 7.51 0.94%], it’s getting into logistics with AbaCore [ABA 1.10 3.77%], it’s buying U-Pay from ABS-CBN [ABS 16.24 4.91%], it’s hoping to get into the Australian cannabis industry, and it’s looking to develop Makati Subway-adjacent “transient-oriented communities.”

But also Mr Tiu would like to make GREEN his personal holdco, which he said when he used GREEN cash to buy shares of his other company, AgriNurture [ANI 4.89 2.00%].

So now that GREEN has raised its authorized capital to a level that could absolutely nuke existing shareholders with dilution, what’s GREEN going to do? Is the capital raise meant to lean into any of these memorandums of understanding to develop something more tangible, or is the intent to raise money that it can use to buy up other Antonio Tiu-led businesses?

I’m only speculating here, and I don’t mean to draw overly negative inferences from what’s been happening, but I feel like investors aren’t left with much to work with to try and figure out where Mr Tiu is going with all of this activity. If you claim to have a massive masterplan but neglect to provide specific, measurable benchmarks on how you plan to execute that plan,  almost anything you do can be made to look like a valid step in the right direction. 

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