ADM Energy PLC (AIM:ADME, XETRA:P4JC) announced it has conditionally raised £375,000 to increase its exposure to Vega Upstream JV, as the natural resources investor looks to build out its US onshore oil and gas interests.
The AIM-listed company raised £200,000 through a placing of 1.0bn new shares and £175,000 through a subscription for 875mln new shares, both priced at 0.02p per share.
ADM said the proceeds will be used primarily to increase its interest in Vega Upstream JV, LLC to around 35% through an additional US$300,000 capital contribution, with the remainder used for working capital. The additional investment is expected to lift monthly revenue attributable to ADM to about US$111,000, subject to certain conditions.
Executive director Randall Connally said the previously announced Midcon acquisition is the “cornerstone to rebuild ADM”, adding that the placing makes it possible for the company to realise “maximum benefit from the revenue, cash flow and upside” of the acquisition.
Alongside the placing, ADM will issue 250mln shares to settle certain creditors and 125mln shares to executive director Randall Connally in settlement of accrued and unpaid salary.
In London, ADM Energy shares were down 33%, changing hands at 0.023p.