Global Petroleum (AIM:GBP) shares fell 23%, to 0.065p each after the exploration company secured a ‘keep the lights on’ equity raise via CMC Markets.
The company, which is seeking to bring a major exploration partner into its Namibia project, told investors it had raised £253,000 of new capital, selling new shares at a discounted price of 0.06p.
Daniel Page, executive chairman, in a statement said: “The primary purpose of the Fundraise is to ensure that the liabilities in relation to the obligations of the company's Walvis Basin licence PEL94 are completed to pre-agreed timelines set by the Namibia Government, as the directors now believe them to be.”
He added: “The funding will also allow us to have further working capital as we begin to look at other exciting opportunities within the sector which I am keen to integrate as part of Global's portfolio of assets with this process starting shortly.
“Delivering long term shareholder value is fundamental for us as a new board.”
Page joined as executive chair on Monday, along with new executive director Cecilia Yu and non-executive director Azib Khan. At the same time, Peter Hill, John van der Welle and Garrick Higgins exited the company with immediate effect.
On Monday, Page told investors: “The primary focus of the new leadership team will be to assess the present assets of the Company with the view to maximise shareholder value and finding suitable other opportunities in this sector using our extensive network to significantly drive the company valuation.
“The team will also ensure financial prudence is at the forefront of any strategy devised and a focus on shareholder engagement is paramount.”
Today, Page added that the Namibia asset can be a significant value driver for the company, and, in the meantime, management has begun a cost review.
“We, as a board, are very excited for the future of Global and would like to thank the new investors for joining us at this stage and to the existing shareholders for the enthusiasm and support that has been shown to us in this short time,” Page added.
“We look forward to their continued and future support as we pursue our multiyear goals for the business."