The board of Geo-Fluids Plc has been given approval to increase the company’s authorised share capital from N2.13 billion to N25.00 billion.
The authorisation for this was given by shareholders at the organisation’s Annual General Meeting (AGM) on Monday.
With this, Geo-Fluids can raise additional funds of up to N22.87 billion through “special placement, private placement, private placement, public offer, rights issue, extraordinary grant of shares and/or any other such methods as they deem fit either in Nigeria or internationally, on or at such dates and on such terms and conditions as shall be determined by the directors,” according to one of the resolutions passed at the gathering.
The raise in share capital would be done by creating additional 45.74 billion ordinary shares of 50 Kobo each, ranking equally with existing shares.
Geo-Fluids currently trades its stocks on the NASD OTC Securities Exchange at N6.00 per unit.
The oilfield services firm is seeking fresh funds as part of its major restructuring plan, with its eventual destination being on the Nigerian Exchange (NGX) Limited after delisting from the NASD.
Commenting on the latest development, the chairman of Geo-Fluids, Mr Jacob Esan, said, “When I assumed leadership of this company on September 1, 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,” he added.
Also at the meeting, shareholders approved the audited financial statements of the organisation from 2012 to 2024 fiscal years,
They also passed a resolution allotting some shares from the newly created ordinary shares to Mr Esan to appreciate him for resuscitating Geo-Fluids.