The Philippine Stock Exchange will impose a one-hour trading halt Monday on the shares of Alcorn Gold Resources Corporation to allow investors to digest the news of the acquisition of a controlling stake by businessman Lucio Co.

The acquisition raises the possibility of the backdoor listing of Co’s other business interests such as the Puregold chain of supermarkets.

In a disclosure to the PSE, Alcorn said its has filed with the Securities and Exchange Commission (SEC) its application for an increase in its authorized capital stock to P3 billion from P700 million.

Co has subscribed to P575 million of the P2.3-billion increase, constituting 25 percent of the capital hike, and has made an initial payment of P143.75 million for his subscription.

Once the capital hike is approved by the SEC, Alcorn said Co will have a 66 percent stake in the company’s outstanding capital.

“The capital increase is in preparation to the company’s participation/acquisition of various projects and assets that will contribute to its portfolio of assets which will add value to its stockholders,” said  Alcorn general manager Ponciano Mathay.

Alcorn had said earlier that it was studying its possible participation in other industries and projects that are compatible with its long-term plans and funding position.

If necessary, the company would use additional capital to finance exploration activities and maintenance of its various concession areas as well as to support general and administrative requirements.
As of end-December 2009, AGRC had a cash position of P225.486 million, which is sufficient to support its operations and project commitments for the next 12 months.