Geo-Fluids Plc has announced plans to raise up to N22.8 billion of additional capital through a private placement, public offering, rights issue, extraordinary grant of shares and/or any other means deemed appropriate in Nigeria or internationally.
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Shareholders of the company approved the move at the company’s annual general meeting held in Abuja on Monday.
Speaking during the meeting, chairman of the board Jacob Ason said the approval marked a turning point for the company, which had previously been under receivership.
According to him, the capital raise and planned listing will strengthen the balance sheet, provide growth capital and support the company's strategy to expand beyond mud engineering into broader energy and industrial services.
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He said, “When I took over the leadership of this company on 1 September 2018, Geo-Fluids Plc was going through a long and challenging period of receivership. I am pleased to report that the receivership was successfully vacated in 2023.
“Geo-Fluids plc stands at a new threshold in its history. The receivership is behind us, the governance structure has been restored, and the company is now ready to pursue new and complementary business opportunities with clarity and purpose.”
Other approvals at the AGM included increasing the authorized share capital of the company from N2.13 billion to N25 billion by creating 45.74 billion additional ordinary shares of 50 kobo each ranking at par with the existing shares. This is because the company plans to list on NGX and potentially other international exchanges.
Shareholders also approved the final removal of the Company from the NASD platform following completion of the NGX listing, as well as an amendment to the Company's Memorandum and Articles of Association and changing the name to 'The Geo-Fluids Group plc'.
The AGM also approved the conversion of the directors' current account totaling N2.59 billion into fully paid up ordinary shares, subject to regulatory approval.
The company's audited statement for 2024 indicated total assets of N10.47 billion at the end of December 2024, up from N8.95 billion in 2023. Cash and cash equivalents stood at N7.27 million, while deferred expenses stood at N8.04 billion.
Also, total liabilities stood at N2.91 billion, while total net assets stood at N7.56 billion. The cash flow statement shows a net cash outflow from investing activities of N1.17 billion in 2024, largely offset by net cash inflow from financing activities of N1.13 billion.
