LISTED technology firm Xurpas, Inc. is exploring the potential sale of its stake in Indonesian company PT Sembilan Digital Investama (SDI) as a part of efforts to enhance its equity position.
In a regulatory filing on Wednesday, Xurpas said it has began preliminary talks with a prospective buyer and goals to finalize definitive agreements by September.
The Philippine Stock Exchange asked the corporate about its plans to deal with its negative equity, which puts it liable to involuntary delisting.
“Proceeds from the sale will support the corporate’s liquidity. The funds can be used to support the corporate’s operations, with the goal of improving financial performance and, in the long run, contribute to equity recovery,” Xurpas said.
As of end-March, Xurpas posted negative equity amounting to P111.51 million.
In March 2015, Xurpas acquired a 49% stake in SDI for P10.83 million. The acquisition provided Xurpas with access to SDI-owned mobile content and distribution company PT Ninelives Interactive.
Xurpas has prolonged advances totaling P22.08 million to SDI as of end-March and end-December last 12 months to support its mobile content and distribution services.
Other than the divestment, Xurpas can also be planning various initiatives from this month until December to extend equity capital and improve its financial position, including ongoing discussions with prospective investors for a personal placement.
“The corporate goals to finalize terms and execution inside the second half of 2025,” it said.
Xurpas is seeking to implement cost-saving initiatives corresponding to workforce rightsizing, strategic resource allocation, streamlining of administrative functions, and prioritization of high-margin service offerings. It’s also considering using its additional paid-in capital to scale back its deficit.
“The corporate can also be strengthening its revenue base by expanding enterprise services corresponding to information technology staff augmentation and artificial intelligence consulting, developing digital solutions targeted at small and medium enterprises to diversify its customer base and enhancing brand positioning through targeted marketing and international expansion,” Xurpas said.
For the primary quarter, Xurpas trimmed its net loss to P9.43 million from P26.36 million in the identical period last 12 months. Service income rose by 20% to P42.4 million, driven by a rise in enterprise and other services.
The corporate provides mobile marketing and promoting solutions integrated into consumer digital products and platforms for mobile users.
Xurpas shares were last traded on July 8, closing unchanged at P0.241 per share. — Revin Mikhael D. Ochave