"DELISTED" Calata Corp.
...pabayaan nyo na 'to si Joseph, para foreigners naman ang maloko Tongue

Calata says SEC has no jurisdiction over ICO

DESPITE a cease-and-desist order (CDO) issued by the Securities and Exchange Commission (SEC) on his company’s initial coin offering (ICO), businessman Joseph H. Calata insisted this does not prohibit online agribusiness venture Krops from selling digital coins to foreign investors.

In a letter addressed to participants of the ICO, Mr. Calata said it will stop the sale of tokens to Filipinos as per the SEC’s orders, but will continue with the offering for prospective foreign buyers.

“To be clear, we understand that the CDO was just an order to stop the selling of KropCoins only to Filipino nationals. The Philippine SEC cannot prohibit selling to other nationalities because this is not under their jurisdiction. The CDO is also not to stop the operation of the Krops application which serves as the daily virtual agricultural market place of all buyers and sellers of agricultural products,” he said.

Mr. Calata insisted the Philippine SEC has no jurisdiction over Krops’ ICO, “simply because this is a global offering and not a public offering limited to the Philippines.”

The company’s coin offering continues to be held online, with a total of 4.81 million tokens already sold out of the 6.4 million pre-sale tokens as of Jan. 30. The tokens are being sold in exchange for the digital currency called etherium, at a price of 0.0015 ETH apiece.

While Krops will no longer be selling tokens to Filipinos, Mr. Calata clarified that those sold prior to SEC’s CDO will remain a part of the ICO.

The SEC last Jan. 26 had stopped the ICO of Krops, involving three other Calata-led firms: Black Cell Technology, Inc., Black Sands Capital, Inc., and Black Cell Technology, Inc. The country’s corporate regulator said that the companies failed to register the securities being offered in the ICO, making the issuance illegal.

Krops describes itself as an online marketplace for agricultural products with an inventory of P15 billion, making it the “biggest farm in the Philippines and most diverse without owning a single farm.”

Mr. Calata noted that given the absence of regulations pertaining to ICOs, Black Cell Technology sought the SEC’s audience through a letter dated Jan. 18 to iron out regulatory concerns regarding the offering.

“The letter which clearly had the intention of productively threshing out any issues with SEC was simply ignored. It is quite puzzling why the SEC was very arrogantly dismissive, to say the least,” according to Mr. Calata.

The businessman said they are now seeking another dialogue with the SEC to clarify matters regarding the ICO. For one, Mr. Calata said that the SEC has the “erroneous impression and belief that the KropCoin ICO is somehow related to Calata or CalCoins.”

To recall, CalCoins were Mr. Calata’s proposed alternative to shareholders of now delisted agribusiness firm Calata Corp. Mr. Calata, who served as the company’s chairman, gave shareholders the option to exchange their shares for digital tokens that can then be traded in international cryptocurrency exchanges.

With these assumptions, Mr. Calata claimed that the SEC’s CDO has been “nothing but a harassment against me.”

Following the CDO against Calata’s businesses, the SEC said it will be investigating other companies that have launched ICOs in the past without their knowledge. The commission will also be releasing guidelines for ICOs within the year. 


...hindi ko pala na-post ito

SharePhil asks SEC to investigate stock transactions of Calata officials

The Shareholders’ Association of the Philippines Inc. (SharePHIL), a group of minority stockholders in the country, has asked the Securities and Exchange Commission (SEC) to investigate stock  market transactions made by directors, officers, and other insiders of Calata Corp. (Calata). 

Calata, founded by businessman Joseph Calata, is a distributor and retailer of agricultural products.  

In a letter to the SEC dated Feb. 8, SharePHIL alleged that Calata did not disclose material information when it suffered a P126 million casualty loss caused by a typhoon in the fourth quarter of 2016. 

 “The casualty loss was not promptly disclosed to the public as required by the Securities Rules and Regulation (SRC) and disclosure rules of the Philippine Stock Exchange (PSE), but mentioned only in Calata’s audited financial statements dated April 26, 2017 as part of its 2016 annual report and was disclosed to the public only on May 2, 2017,” SharePHIL said.  

Sought for comment, Calata told The STAR that the revenue generated by its property damaged by the typhoon constituted only one percent of the total revenue of Calata Corp.

“Moreover such loss did not have any mpact whatsoever on the net profit of the company for 2016 which even increased compared to 2015 in spite of all accusations being thrown against the company,” he said. 

SharePHIL explained that after this unreported casualty loss, Calata, the president and CEO, disposed and sold a total of 108.602 million shares valued at P277.4 million. The sale of the shares happened in a series of transactions starting in the fourth quarter of 2016 until  the first quarter of  2017.

SharePHIL president Francis Lim said the move is part of the group’s efforts to build public confidence in the stock market.

“The request for inquiry reflects SharePHIL’s desire to help our government build integrity and public confidence in our stock market as a means of developing it  to make  it more competitive with the rest of the region,” Lim said. 

Lim, a known corporate lawyer, said the SRC and PSE disclosure rules require that material information regarding a publicly listed company be disclosed within 10 minutes from the time a listed company learns of it. 

“This rule aims to ensure a level playing field in the stock market to prevent insiders from taking undue advantage of the investing public in the trading of the company’s shares,” Lim said.

SharePHIL pointed out that Calata’s stock price continuously went down to P1.86 in May 2017 from P3.49 per share on Oct. 3, 2016 when its audited financial statement was disclosed as part of the company’s 2016 annual report.  

Lim said the casualty loss, was a material development for the company because its “revenue comes primarily from the sale of agricultural products.”  

“We trust that after its investigation, the SEC will take appropriate actions as may be warranted against those whom it will find responsible,” Lim said.


May balita na po kayo dito? Sayang nainvest ko dito ang ganda pa nman nun business nila sa agriculture, napunta tuloy ako sa farmon

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