ANTONIO L. Tiu-led Greenergy Holdings, Inc. on Tuesday announced that it had discontinued its partnership with RYM Business Management Corp. and some landowners after the termination of a memorandum of agreement (MoA).
“The parties (RYM Business and the landowners) have decided to no longer pursue the transaction contemplated under the MoA due to the impact of the COVID-19 pandemic, the resulting prolonged community quarantine, and the effect thereof on real estate property businesses,” Greenergy said in a regulatory filing.
Under the MoA, which was disclosed in July last year, Greenenergy and RYM would nominate appraisal companies to determine the average value of various properties in Rizal province. These properties are parcels of land with an area of 400 hectares.
The MoA said that Prime Media Holdings, of which RYM is a primary shareholder, would issue primary common shares at an issue price equal to the par value “in exchange for the investment, infusion, and contribution by investors who own the parcels of land.”
The shares would be issued from Prime Media’s unissued authorized capital stock. The transaction was seen to raise funds for Greenergy’s smart-farming agricultural area and smart-city developments, the firm said in a disclosure last year.
On Tuesday, Greenergy said that the termination of the MoA had taken effect on Dec. 28.
It added that the company would focus its core investments and projects in food and agriculture, medical hemp production, digitalization and the development of green infrastructure.
Last year, Greenergy ended its MoA with a Korean-based TheBizLink Co. Ltd. and its local unit TheBizLink Philippines, Inc. which were supposed to develop for it a number of ventures, including a transport hub and “smart” property projects.
Greenergy shares on Tuesday inched up 1.56% to close at P2.60 apiece. — Angelica Y. Yang