Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXF) (COPL) has now confirmed the closing of its proposed $2.5 million equity financing, announced in late December.
It noted that the fast-tracked funding satisfied its "urgent liquidity needs" and allows it to retain an independent E&P technical consultant, appoint a chief restructuring officer and maintain its public listings in London and Canada.
The company sold 1.312 billion new shares to Anavio Capital Partners, its leading equity and convertible bond holder. The placing results in Anavio owning a 24.5% interest in the company, and it will also receive 1 share warrant, exercisable at 0.15p, for each new share it purchased.
COPL, in a statement, added: “The company is also exploring ways to allow shareholders and other investors the chance to participate in an equity placing.
“The company remains in a precarious financial situation with very limited liquidity.
“As previously announced, the forbearance agreement with the [company’s] senior lender expires on February 29, 2024 and there can be no assurance that it will be extended or that the conditions of default will be remedied or waived.”