BowLeven PLC (AIM:BLVN) saw its share price collapse by 42% on Tuesday after warning that on current forecasts it could run out of cash by the end of 2023 putting the future of the company in doubt.
The Africa-focused oil and gas exploration group said it was considering various fundraising options including debt and equity issues, as well as hybrid debt instruments to raise additional funding during early 2023.
But it cautioned “no such plans have been put in place at the current time and there can be no certainty that any additional financing will be concluded, nor as to the terms of any such additional financing.”
The AIM-listed group said it closed the year with $1.3mln of cash which together with a financial investment of $2.2mln gives a total value of available funds of $3.5mln.
Bowleven anticipated a higher Etinde expenditure in 2023 which when combined with the group’s current cash and liquid resources meant there was a “material risk that Bowleven will fully utilise its existing cash resources by the end of 2023.”
The company warned “this gives rise to material uncertainty regarding the going concern status of the Bowleven group.”
The news came together with the company's full-year results to 30 June 2022 in which it reported a loss of $2.5mln.