PhilWeb goes for trading halt, calls for emergency meeting

Shares of beleaguered PhilWeb Corporation are on voluntary trading halt from Wednesday until August 24.

Trading of PhilWeb shares was suspended at 9:00 a.m. Wednesday. The suspension would be lifted at 9:00 a.m. on August 24, according to the Philippine Stock Exchange, although the company sought a voluntary trading suspension until the end of August.

"Due to material uncertainties and unverified material information affecting the business of PhilWeb Corp. that will materially affect the investing public and in order to prevent a false or disorderly trading of PhilWeb shares, we hereby request for a trading suspension in PhilWeb shares from August 10 to 31, 2016," PhilWeb Corporate Information Officer Raymund S. Aquino told the Philippine Stock Exchange.

The company has failed to renew its licensing deal with the Philippine Amusement and Gaming Corp. (PAGCOR), covering the technology supply contract for the industry regulator's e-Games outlets or internet cafes equipped with software exclusively dedicated to casino games.

"This will ensure that PhilWeb shares are not being traded on an uninformed basis," Aquino said.

With the company's intellectual property licensing and management agreement contract with PAGCOR no longer in place, PhilWeb President Dennis Valdes said the firm is winding down its operations as service provider for the e-Games network.

The company called for an emergency meeting of all shareholders and directors, including former Chairman Roberto V. Ongpin, e-Games operators, and employees on Wednesday in Makati City.

The emergency meeting was called "... in order to properly appraise all stakeholders about the future of PhilWeb," Aquino said.

On Tuesday, PhilWeb shares traded at a low of P3.012 apiece before it closed at P4.25, down P0.88 or 17.15 percent from P5.13 at the close of trading on Monday.

Since June 30, when the President vowed to stop the proliferation of online gambling, the firm's shares plunged by P20.15 or 82.58 percent from P24.4 apiece.  — Ted Cordero/VDS, GMA News