MINING firm JDVC Resources Corp. is switching to shell company Apollo Global Capital Inc. (APL) as its backdoor listing vehicle after a previous merger plan with Island Information and Technology Inc. (IITI) fell through.

In separate disclosures to the Philippine Stock Exchange (PSE), APL said its board of directors approved on Friday last week the subscription of 247.4 billion shares in the company by four individuals led by Hyung Rae Doo, who owns 40 percent of JDVC, as well as Napoleon M. Deleon Jr., Garry Lincoln C. Taboso and Daniel Chua Go.

Priced at P0.01 per share, the total transaction value is P2.47 billion.

Under a deed of exchange which was executed the same day, APL also subscribed to 4.133 million common shares of JDVC, which amounts to an 83 percent stake in the private mining firm.

The PSE suspended the trading of APL shares indefinitely, starting 9:00 a.m. on Monday, as the transaction is covered by the exchange’s rules on backdoor listing.

“The purpose of the transaction is to revive the business operations of, and give value to, APL. As may be noted from its financial statements, APL has no substantial assets. Through the transaction, a new business will be infused into APL which will allow it to take initial steps towards providing its shareholders with better returns on their investment,” APL said.

The transaction is still subject to approvals from the Securities and Exchange Commission (SEC) and the PSE.
IITI was the first prospect firm of JDVC to use as backdoor listing vehicle on the PSE. But the two parties failed to reach any binding agreement after their memorandum of understanding (MOU) lapsed in February 2015, which was signed in December 2014.

JDVC is a mining firm with an offshore mining agreement with the government involving 13,240 hectares of mine in Cagayan. It is 40-percent owned by South Korean Hyung Rae Doo, while the remaining stake is held by six Filipino shareholders.

Through JDVC’s mineral production sharing agreement (MPSA) with the government, JDVC has the exclusive right to mine for magnetite in the offshore areas of Sanchez Mira, Pamplona, Abulug, Ballesteros, Aparri, Buguey and Gonzaga — all in Cagayan. The ore is then shipped mostly to China, Japan and Korea.

Incorporated in 1998, Apollo Global, formerly Yehey Corp, transitioned from digital marketing to its present operation as a holding company. It is led by businessman Alfonso Yap Go.