By Kyle Morris

Shares in ADM Energy PLC jumped 41% on Monday after it said that it has raised around 725,000 pounds ($810,767) through a subscription and loan, and that Osa Okhomina will step down as chief executive.

The natural-resources investing company said it has raised around GBP500,000 at a subscription price of 1.2 pence a share through the issue of 41.7 million new ordinary shares to private investment firm Tennessee Black Gold LLC. Some GBP100,000 has been remitted, and GBP400,000 is due by Oct. 28.

ADM Energy said it has also entered into a loan agreement with Tennessee Black Gold for $250,000.

Proceeds will be used to reduce outstanding creditors and for general working capital purposes. A review of operations to implement a cost reduction program will also be undertaken, the company said.

Mr. Okhomina will step down from the board of directors and his role as chief executive upon receipt of the total subscription amount, expected by Oct. 28, the company said.

A recruitment process for a successor will begin, and the role may be filled by existing directors in the interim period, the company said.

Shares at 0703 GMT were up 0.23 pence at 0.78 pence.

Write to Kyle Morris at kyle.morris@dowjones.com

(END) Dow Jones Newswires

October 17, 2022 03:28 ET (07:28 GMT)

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