Strategic Financial Measures and Capital Enhancement
XURPAS Inc.’s board of directors has officially approved the sale of treasury shares, marking a crucial step in the company’s comprehensive capital-raising efforts. This strategic decision is designed to significantly enhance Xurpas’ financial position and effectively address its negative shareholders’ equity. The company formally announced this development to the stock exchange on Wednesday, July 23, 2025, clarifying that the approval is part of a wider set of financial recovery measures. These proactive steps have been initiated by Xurpas with the primary goal of mitigating the risk of potential delisting from the bourse. As part of this overarching plan, the company had previously disclosed its ongoing discussions to divest its 49 percent stake in PT Sembilan Digital Investama (SDI), a mobile content company based in Jakarta. This specific divestment is an integral part of the compliance plan submitted to the Philippine Stock Exchange (PSE), with the final definitive agreements for the SDI stake sale anticipated to be concluded by September 2025.
Implementing a Multifaceted Recovery and Growth Plan
In addition to the recently approved sale of treasury shares and the planned divestment of its stake in PT Sembilan Digital Investama, Xurpas is pursuing a multi-pronged approach to its financial recovery. The company’s strategy includes the implementation of robust cost rationalization measures and a comprehensive equity restructuring. Furthermore, Xurpas is actively engaged in discussions for a private placement with potential investors, with the goal of executing this placement within the second half of 2025. The company also intends to seek the necessary approval from the Securities and Exchange Commission to utilize its additional paid-in capital to reduce its accumulated deficit, further strengthening its balance sheet. Beyond these immediate financial remedies, Xurpas has laid out clear plans for future growth. The company aims to expand its business into high-growth enterprise services, including IT staff augmentation and artificial intelligence consulting. It is also focused on developing tailored digital solutions for small and medium-sized enterprises and plans to reinforce its brand through strategic marketing and international expansion initiatives.
Expanding into New Markets and Future Outlook
Xurpas’s forward-looking strategy is not limited to financial restructuring but also includes a significant pivot towards new and promising business avenues. The company’s focus on expanding into enterprise services, such as IT staff augmentation and artificial intelligence consulting, demonstrates a clear commitment to diversifying its revenue streams and capitalizing on a growing market. This shift is a key part of its long-term plan to ensure sustained profitability and relevance. The company is also dedicating resources to developing digital solutions specifically for small and medium enterprises, recognizing the vast potential within this sector. By enhancing its brand positioning through targeted marketing and international growth initiatives, Xurpas aims to rebuild its market reputation and attract a broader customer base. Despite these strategic announcements, the company’s share price experienced a decline on Wednesday, closing at P0.20 per share, a 29-centavo decrease. This short-term market reaction, however, should be viewed in the context of the company’s broader, long-term strategic plan designed to address its financial challenges and pave the way for future growth and stability.
