LISTED technology firm Xurpas, Inc. is exploring the potential sale of its stake in Indonesian company PT Sembilan Digital Investama (SDI) as part of efforts to improve its equity position.
In a regulatory filing on Wednesday, Xurpas said it has started preliminary talks with a prospective buyer and aims to finalize definitive agreements by September.
The Philippine Stock Exchange asked the company about its plans to address its negative equity, which puts it at risk of involuntary delisting.
“Proceeds from the sale will support the company’s liquidity. The funds will be used to support the company’s operations, with the goal of improving financial performance and, in the long term, 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 extended advances totaling P22.08 million to SDI as of end-March and end-December last year to support its mobile content and distribution services.
Aside from the divestment, Xurpas is also planning various initiatives from this month until December to increase equity capital and improve its financial position, including ongoing discussions with prospective investors for a private placement.
“The company aims to finalize terms and execution within the second half of 2025,” it said.
Xurpas is looking to implement cost-saving initiatives such as workforce rightsizing, strategic resource allocation, streamlining of administrative functions, and prioritization of high-margin service offerings. It is also considering the use of its additional paid-in capital to reduce its deficit.
“The company is also strengthening its revenue base by expanding enterprise services such as 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 first quarter, Xurpas trimmed its net loss to P9.43 million from P26.36 million in the same period last year. Service income rose by 20% to P42.4 million, driven by an increase in enterprise and other services.
The company provides mobile marketing and advertising 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
