IT company Xurpas has announced that two of its founders, Nico Jose Nolledo and Fernando Jude Garcia, are set to convert shareholder advances worth P136 million into equity.
The advances were initially provided by Nolledo and Garcia to serve as capital for Xurpas’ strategic shift towards the enterprise market. Xurpas plans to offer AI consulting and development services to local companies.
Within the next 30 days, the final conversion price will be determined, subject to specific conditions. These conditions include the conversion price being above the market price and being supported by a fairness opinion from a qualified third-party authority.
Xurpas will submit an application to the Securities and Exchange Commission, seeking a confirmation of valuation.
The conversion of the founders’ advances to equity is expected to significantly improve and strengthen Xurpas’ balance sheet. It also reflects the founders’ confidence in the company’s ability to further expand its business.
As Xurpas focuses on the enterprise segment, it has developed distinct products and services catering to customers both in the Philippines and overseas.
Fernando Jude Garcia, Xurpas’ chief technology officer, highlighted the company’s steady progress in the enterprise segment. He said that Xurpas has not only grown its core software development and IT staff augmentation businesses but has also introduced pre-packaged business solutions for SMEs.