[June 19, 2020], Manila
 

Roxas and Company, Inc. (RCI) is pleased to announce the signing of a Php800 Million equity placement commitment with LDA Capital, LLC, a US and European based global investment group.
 

This equity placement commitment is part of RCI’s fund-raising activities aimed at strengthening its subsidiaries engaged in agri-business, real estate development, hotel operations and management. RCI will use the LDA proceeds for additional working capital and to support the reduction of bank debts.
 

Under this equity placement commitment, RCI has the right, but not the obligation, to sell shares to LDA subject to the conditions of the Put Option Agreement (“POA”). RCI will control the timing and maximum amount of the POA and may sell up to PhP800 Million worth of RCI treasury shares during the 36 months from signing of the Agreement. All transactions pursuant to the POA will be subject to required regulatory and Board approvals.

 

In addition to the equity placement commitment under the POA, LDA will be given a Call Option to purchase up to ninety-nine million (99,000,000) common shares of RCI at an exercise price of PhP2.38 per share, exercisable any time during the term of the Agreement.

 

The equity placement commitment provides a natural hedge against the uncertainty and volatility of a public markets offer, and as such, demonstrates the “Staying Power” of RCI and its subsidiaries during this pandemic induced downturn.

 

According to the President/CEO of RCI, Mr. Fernando Gaspar, RCI has opted for this alternative funding activity because it provides the company with the flexibility to raise cash as needed while at the same time protecting the interests of the Company and its shareholders because all transactions will be done through the Philippine Stock Exchange. Mr. Gaspar also added that:

 

"The Company’s roadmap for the past years has been focused on optimizing resources, establishing control points for accountability, fostering new and nurturing existing partnerships, project completion and assessment of businesses with great potential. While 2020 was off to a rocky start, with the Taal eruption affecting one of our key businesses, Anya Resort Tagaytay, and the COVID-19 pandemic putting a pause on operations of all our businesses, we are confident that we will have the tools to recover and further grow the business through the availability of funds from LDA Capital. Some of the projects we will be focusing on are: the coconut processing subsidiary, Roxas Sigma Agriventures Inc. and solar energy project where potential partners have expressed interest in investing. This agreement with LDA demonstrates that RCI remains an attractive investment despite the current uncertainties worldwide."

 

Warren Baker, Managing Partner of LDA Capital, said

 

"The global impact of the COVID-19 pandemic is causing uncertainty in all aspects of our lives and has created a difficult environment for middle market companies to access equity and debt financing. 
 

LDA believes middle market companies are the growth engine of emerging Asia and we are focused on supporting companies through flexible and complementary financing instruments. Through our 3-year equity commitment we are pleased to provide long term financial support to a great business like RCI, and to reassure RCI shareholders and customers of the stability and long-term financial strength of the Company.”

 

About LDA Capital
 

LDA Capital is a global alternative investment group with expertise in complex, cross border transactions worldwide. Our team has dedicated their careers to international & cross border opportunities having collectively executed over 200 transactions in both the public and private markets across 42 countries with aggregate transaction values of over US$10 billion. For more information please visit: www.ldacap.com; For inquires please email: info@ldacap.com

 

About Roxas and Company, Inc.
 

Roxas & Company, Inc. (RCI) is a publicly listed holding company with stakes in (i) real estate development and hospitality through its wholly-owned subsidiary, Roxaco Land Corporation (RLC), (ii) sugar milling and ethanol manufacturing businesses of Roxas Holdings, Inc. (RHI), (iii) coconut processing and exports through its subsidiary, Roxas-Sigma Agriventures, Inc. (RSAI) and (iv) renewable energy development. RCI has been in existence for over 100 years, starting off in the sugar business but has since then diversified its business interests to other industries. For more information, please visit RCI’s website: www.roxascompany.com.ph

FOR FURTHER INFORMATION, PLEASE CONTACT:
 

Monica Villanueva, Investor Relations Officer

Email: miv@roxascompany.com.ph