AJO.net Holdings, Inc. is being taken over by Marcventures Mining and Development Corporation which is using the former as a means to list at the Philippine Stock Exchange via the backdoor.

In a disclosure to the Philippine Stock Exchange (PSE), AJO said it has entered into a Memorandum of Agreement with the shareholders of MMDC under which MMDC will end up owning 97 percent of the company.

MMDC is a nickel mining company with a mine in Cantilan, Surigao del Sur covering about 4,799 hectares and holds a mineral production sharing agreement with the government. Its president is Ramon A. Recto.

Subject to the favorable results of their respective due diligence and the execution of the implementing agreements, MMDC shareholders shall assign all outstanding shares of MMDC worth P1.30 billion in consideration for the issuance of new AJO shares at par value and AJO’s assignment of all of its rights, interests and obligations over 448 membership certificates of The Metropolitan Club worth P50 million.

Under the agreement, the MMDC shareholders and certain new investors shall subscribe to P350 million worth of AJO shares at par value for cash while AJO shall implement certain corporate restructuring activities resulting in the increase in authorized capital stock to up to P2.0 billion.