Canned tuna exporter Alliance Select Foods International Inc. said Friday it will exhaust all legal remedies following the Securities and Exchange Commission en banc’s decision to nullify Strongoak Inc.’s acquisition of the company’s shares.
“The decision has no effect on the company’s business, financial condition, ownership structure, and capital structure until it becomes final, executory and fully implemented. The company shall exhaust all available legal remedies, including filing a petition for review with the Court of Appeals,” the company said in a disclosure to the stock exchange.
ASFII president and chief executive Jeoffrey Yulo said despite the SEC en banc’s decision, it was business as usual for the company.
“We remain focused and driven to continue building on the momentum of our improved performance from third quarter of 2022. This development neither dampens our spirits nor alters our plans for Alliance Select,” Yulo said.
The company received the SEC en banc decision on Jan. 5, annulling the 2014 and 2015 share acquisitions of ASFII’s majority shareholder Strongoak.
The SEC en banc voided the subscriptions to the ASFII’s shares acquired by Strongoak because these supposedly violated Section 19 of the Securities Regulation Code.
Strongoak acquired the ASFII shares under the 2014 private placement and 2015 stock rights offering.
The SEC en banc declared void the subscriptions, which “shall be canceled from the Stock and Transfer Book of ASFII where these shares shall be considered unsubscribed, and shall be allocated for subscription by any person who intends to buy the same provided that he/she complies with all the legal requirements.”
The regulator said that once the subscription was fully paid, “ASFII shall pay Strongoak the price it paid for the subscriptions that were nullified.”
The SEC en banc reversed the ruling of its Markets and Securities Regulation Department on Nov. 2, 2020 on the complaint filed by minority shareholders Hedy Yap-Chua, Harvest All Investment Limited, Victory Fund Ltd., and Bondeast Private Ltd.
The MSRD dismissed the complaint on May 19, 2022 for prescription of action and forum shopping.
ASFII started commercial operations in 2004 to engage in tuna processing, canning, and the export of canned tuna products.
The company is a “private label manufacturer” of canned tuna and processes in institutional and retail pack can sizes using its customers’ brands.
It exports canned tuna products to Europe, North and South America, Asia, Africa, and the Middle East.