LISTED agricultural firm AgriNurture, Inc. (ANI) has decided to extend the due diligence period for its acquisition of information technology company Pay8, Inc.
In a disclosure to the stock exchange on Wednesday, the company said that it had not completed its due diligence because of “supervening events” such as the anticipated listing of Pay8’s major shareholder and parent company Hatchasia, Inc. (HAI) in the Australia Stock Exchange.
The three companies have decided to extend the period for another 60 days.
“HAI and Pay8 have executed written consent for the company to assign to its affiliate, subsidiary or nominee, its rights and obligations under the Memorandum of Agreement,” the disclosure said.
On July 20, AgriNurture signed a memorandum of agreement with Hatchasia and Pay8 for the acquisition of 51% for P377.91 million of the latter’s authorized capital stock.
AgriNurture’s decision to acquire the Pay8 stake is part of its efforts to introduce an “agricultural ecosystem” that aims to reach farmers in rural areas.
“Under the ecosystem, there will be accredited merchants that will initially be the company and its subsidiaries where the farmers can purchase their farm inputs and other supplies, and the company has the option to buy the produce,” the disclosure said.
AgriNurture said Pay8 will be the financial technology unit of its planned ecosystem, with plans to create a platform for more efficient and faster transactions.
“A platform will be set up wherein orders and payments will be facilitated,” it said.
It said Pay8 is involved in the information technology sector that focuses on business and financial applications and products.
On Wednesday, shares in AgriNurture at the stock exchange fell 0.62% or P0.05 to close at P7.99 apiece. — Revin Mikhael D. Ochave