ADM Energy PLC (AIM:ADME, ETR:P4JC) said it has raised £725,000 through a share subscription and loan from Tennessee Black Gold LLC, with proceeds earmarked to reduce amounts owed to creditors and to boost working capital.
At the same time, the company said it has launched a strategic review and seeks to appoint a new chief executive.
The company detailed that it raised £500,000 through the issue of equity via the subscription agreement and separately agreed to borrow US$250,000, over five US$50,000 installments, starting from October 28.
Osa Okhomina is to step down from his role as chief executive upon the company’s receipt of the subscription proceeds, and, a recruitment process is to begin for his replacement. In the meantime, ADM said that the role may be fulfilled by existing directors.
"We are pleased to announce the closing of this funding round at 1.2p per new ordinary share,” said ADM chair Oliver Andrews in a statement. “This reflects the view of us all of the underlying value of the company. We welcome Tennessee Black Gold as our new shareholders and look forward to working with them to deliver shareholder value.
"The company has commenced a strategic review of its assets as well as a cost reduction programme. The funding has put the company on a stronger financial footing and enables us to focus on assets that produce cash and move ahead as a self-sustaining business on a lower cost base.”
Andrews added: "On behalf of ADM, I would like to thank Osa for his contribution to the company and his years of dedicated service. We wish him every success in the future. We have started our search for a new chief executive officer and will update the market in due course."