ADM Energy (LSE:ADME) has raised £375,000 through a placing and subscription involving 1.875 billion new shares priced at 0.02 pence each. The fundraising, backed by both existing and new investors, is intended to support an increased stake in the Vega Upstream joint venture while also reinforcing working capital. In parallel, the company has issued shares to settle outstanding debt and unpaid salaries, significantly expanding its equity base and aligning with its strategy to benefit from the Midcon Acquisition and growth in U.S. onshore revenues.
Increased Stake in Vega Upstream and Balance Sheet Restructuring
The company plans to allocate approximately US$300,000 from the proceeds to raise its interest in the Vega Upstream JV to around 35%. This higher stake is expected to lift projected monthly revenue to roughly US$111,000, improving cash flow from its U.S. asset base. ADM has also appointed Capital Plus Partners as its sole broker. Additionally, 2.25 billion new shares are set to be admitted to trading on AIM, bringing total voting rights to approximately 4.8 billion. These steps form part of a broader effort to restructure the balance sheet and position the company for future expansion.
More about ADM Energy plc
ADM Energy is a natural resources investment company with a portfolio spanning U.S. onshore oil and gas and offshore Nigerian assets. Its holdings include full ownership of Vega Oil and Gas, stakes in Eco Oil and OFX Technologies, a 10% interest in the Vega Upstream JV targeting U.S. opportunities, and a 9.2% profit interest in Nigeria’s Aje Field, which contains multiple oil, gas, and condensate reservoirs.
Leave a Reply