Cash-strapped Xurpas founded by self-styled digital entrepreneurs Nico Jose “Nix” Nolledo, Raymond Gerard Racaza, and Fernando Jude “Andy” Garcia has lost its white knight after waiting in vain for more than year.
Eric Manlunas of Wavemaker Group has informed Xurpas on December 22, 2021, that his company was terminating the subscription agreement it signed with the loss-making IT company on September 20, 2020 due to failure to close the transaction nearly a year ago or December 31, 2020.
Wavemaker said it has also terminated the stock purchase agreement wherein Xurpas would purchase Wavemaker Shares.
Xurpas corporate secretary Mark Gorriceta said no shares were issued to Wavemaker and stockholders have yet to approve the listing of the said shares.
Under the reverse takeover deal, Wavemaker agreed to buy 1.707 billion new shares of Xurpas at a measly 10 centavos each for a 48 percent stake in the publicly-listed company.
Xurpas will then use the P170.7 million to acquire 100 percent of Wavemaker Group, a newly formed holding company that consolidates the interests of the venture capital’s general partners (Benjamin Paul Santos, James Jordan and Manlunas) in Wavemaker’s US business.
The local company will pay some P170.7 million in cash for the US venture capitalist.
The Philippine Stock Exchange has yet to resume trading of Xurpas shares since it was suspended on 21 September 2020 due to its failure to comply with certain regulatory and legal requirements for the benefit of the investing public and all stakeholders.