Netizen Asks Rappler Where They Get the Continued Investment Despite Operating at a Loss


Concerned netizen RG San Luis responded to the viral post of Sass Rogando Sasot about the controversial denials of Rappler who claimed that it was just a mistake on SEC's part, classifying the company as "Other Monetary Intermediation."


Instead of defending Rappler, RG San Luis added another question to Rappler as he asked where did the company get the continued investment despite the fact that they were operating at a loss since its inception.

According to San Luis there are two entities registered with the SEC, Rappler Holdings and Rappler Inc. The first company is a funding conduit acting as an investor in the subsidiary. The second company is the one which operates news site and employs Maria Ressa, Pia Ranada Robles and many other Rapplerettes.

Aside from the question on where Rappler got their investment, the concerned netizen also noted that Maria Ressa should answer if each of the stockholders justify their financial wherewithal to be able to sustain Rappler's continued operation.

Here's the Complete Statement of RG San Luis

There are two entities registered with the SEC; Rappler Holdings and Rappler Inc. The first company is a funding conduit acting as an investor in the subsidiary. The second company is the one which operates the news site and employs Ressa and her Rapplerettes. 

The question which Ressa should answer is where do they get the continued "investment" while Rappler continues to operate at a loss since its inception. Note that the parent and the subsidiary company both share a common set of stockholders. 

The next question Ressa should answer is can each of the stockholders justify their financial wherewithal to be able to sustain Rappler's continued operation? The last capital infusion amounted to P120M. 

Finally, there is the generally accepted accounting principle of a going concern. Losses incurred over time, since incorporation, would cast doubts on a firm's solvency. It is for this reason, that the SEC requires all registered corporations to submit their General Information Sheets and Audited Financial Statements every April after they have filed their Corporate Income Tax Return with the BIR. 

How can Rappler's external auditor continue to justify its viability as a going concern if it continues to incur heavy losses? 

 Rappler didn't address this issue when it published a rejoinder to Mr. Nieto yesterday. Of course, they can always recapitalize by increasing the parent and the subsidiary company's authorized capital stock. 

But eventually, the SEC will have no choice but to call the attention of Rappler to such moves, given the firm continues to lose money. This is the $64 question which Maria Ressa should answer.

The statement of RG San Luis was part of his response to the following statement posted by popular social media personality Sass Rogando Sasot:

Mr Hofileña, the corporate secretary, signed in pain of PERJURY that ALL the information in the GIS of Rappler have been VERIFIED by him. Mr Hofileña testified that the information in the GIS are TRUE AND CORRECT.

That means mali ang Rappler na kagagawan ng SEC na i-classify sila na
1. Other monetary intermediation
2. at i-describe na business nila as: Property Investment and Development

Why? Because Mr Hofileña declared it under oath that the info in the GIS are true and correct.
Rappler's 2016 GIS

Source: RG San Luis FB Page
 

Netizen Asks Rappler Where They Get the Continued Investment Despite Operating at a Loss Netizen Asks Rappler Where They Get the Continued Investment Despite Operating at a Loss Reviewed by Phil Newsome on 2/03/2017 Rating: 5

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