Geo-Fluids Plc has announced plans to raise additional capital of up to N22.8 billion through a private placement, public offer, rights issue, extraordinary grant of shares, and/or any other methods deemed fit, either 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, Jacob Esan, Chairman of the Board, said that the approvals marked a turning point for the company, which had previously been under receivership.
According to him, the capital raise and planned listing would strengthen the balance sheet, provide growth capital, and support the company’s strategy of expanding beyond mud engineering into broader energy and industrial services.
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He said, “When I assumed leadership of this Company on 1st September 2018, Geo-Fluids Plc was going through a prolonged and challenging period of receivership. I am happy 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 repositioned to pursue new and complementary business opportunities with clarity and purpose.”
Other approval at the AGM include an increase in the company’s authorised share capital from N2.13 billion to N25 billion by creating 45.74 billion additional ordinary shares of 50 kobo each, ranking equally with existing shares. This is as the company plans to be listed on the NGX and potentially other international exchanges.
The shareholders also approved the eventual delisting of the company from the NASD platform once the NGX listing is completed, as well as amendments to the company’s Memorandum and Articles Articles of Association and a change of name to ‘The Geo-Fluids Group Plc’.
The AGM further approved the conversion of directors’ current account balances totalling N2.59 billion into fully paid ordinary shares, also subject to regulatory clearance.
The company’s audited statement for 2024 indicated a total assets of N10.47 billion at the end of December 2024, an increase from N8.95 billion in 2023. Cash and cash equivalents stood at N7.27million, while deferred expenses amounted to N8.04 billion.
Also, the total liabilities were N2.91 billion, while total net assets was N7.56 billion. The cash flow statement showed net cash outflows from investing activities of N1.17 billion in 2024, largely offset by net cash inflows from financing activities of N1.13 billion.
