‘Lokal Plate’ denies it is soliciting investments

Lokal Plate Corporation on Tuesday denied it was soliciting investments following the Securities and Exchange Commission’s warning to the public against dealing with or investing with the company as it did not have the necessary authorization.

According to JP Soriano’s report on “24 Oras,” Lokal Plate founder and CEO Brian So clarified that the company was only offering franchises.

“As far as Lokal Plate is concerned, we are not engaged with soliciting investment or trading of securities, we are engaged in the business of franchising which we are complying with Securities and Exchange Commission,” So said.

“We have the articles of incorporation from SEC to back it up. We assure our partners and other stakeholders that we are a legitimate business,” he added.

As posted online, Lokal Plate is offering franchises in which a franchisee invests P12,888 to earn P40,000 to P80,000 per month.

So explained that franchisees will be able to earn a commission from the food they sell online.

“We’re not doing something wrong. Lahat ng ginagawa natin na ‘to is ginawa namin siya actually to help these local merchants during this pandemic,” he said.

Earlier, the SEC warned the public against dealing or investing with Lokal Plate as it did not have the necessary authority to solicit investments.

The corporate regulator issued the advisory after it received information that several individuals or groups of people claiming to represent Lokal Plate allegedly enticed the public to invest their money with them.

The SEC, citing its records, said Lokal Plate registered as a corporation on August 7, 2020.

However, it is not authorized to solicit investments from the public “since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the SRC (Securities Regulation Code).”

Considering that the scheme involves the sale of securities to the public in the form of investment contracts, the SRC requires that these securities be duly registered and that the concerned corporation and/or its agents have the appropriate registration and/or license to sell such securities to the public under Section 8 and 28 of the SRC.

The SEC also noted that Lokal Plate’s primary purpose clause in its Articles of Incorporation, which did not include “franchising,” was quoted as follows:

“To engage in online selling of food, and promote, advertise such food products online. Provided that the corporation shall not solicit, accept or take investments/placements from the public neither shall it issue investment contracts.”

Further, SEC enforcement and investor protection department officer-in-charge Atty. Oliver Leonardo said it had coordinated with the National Bureau of Investigation regarding the matter.

“Lalo na po ‘yong mga ganiyan, napakataas ng pinapangakong kita o tubo eh magduda na po tayo. To good to be true ika nga,” Leonardo said. — Ma. Angelica Garcia/DVM, GMA News