Music Semiconductors to raise P95M to fund new product devt

MANILA, Philippines - Listed firm Music Semiconductors Corp. is raising P95 million by issuing shares out of its unissued capital stock to fund the development of a new product for export. It told the stock exchange on Friday it is issuing around 600 million common shares, through private placement, out of the company’s unissued capital stock at 16 centavos per share. The funds raised would be used to develop a new product under Flexcam (flexible content addressable memory). Private placement means selling equities or debt issues to an investor or a group of investors without a public offering. Juan B. Custodio, Music Semiconductors corporate compliance and information officer, in an interview Friday said Flexcam is a semiconductor product that increases Internet connection speeds, especially when using search engines. He said Flexcam, the company’s flagship product, which is currently under the development and design stage, would be out in the market for export by the first quarter of next year. Mr. Custodio said some of the company’s customers include multinational companies Cisco Systems, LG, and Hitachi. In its disclosure, the company said it is also considering an investment in Abacus Coal Exploration Development Corp., a subsidiary of listed Abacus Consolidated Resources and Holdings, Inc. The company posted a 99% decline in net income in the first half from a year ago due to an increase in wages. — Paolo Luis G. Montecillo, BusinessWorld