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Kibo Energy Announces £500,000 Fundraise and Major Restructuring Plan to Tackle £2.4M Debt | Rateweb
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Kibo Energy Announces £500,000 Fundraise and Major Restructuring Plan to Tackle £2.4M Debt

Kibo Energy PLC (AIM: KIBO; AltX: KBO) announced a comprehensive restructuring plan. This includes board changes, a divestment program, and balance sheet restructuring.

Key Highlights of the Restructuring Plan

Kibo Energy has raised £500,000 in a partly conditional fundraise at a placing price of 0.015p. This capital will support the restructuring efforts and debt reduction.

Board Changes and New Appointments

Mohammed Ashraf has been proposed as the new CEO and Executive Director. Ashraf has extensive experience in advising federal and government bodies and the private sector in the UK and UAE.

James Parsons is set to join as a Non-Executive Director. He will oversee and implement the restructuring plan. Parsons has significant experience in corporate transactions and capital access for junior resource companies.

Stefania Barbaglio has been proposed as a Non-Executive Director and Chairperson. Barbaglio is a renowned business strategist with over 10 years of experience in equity and digital asset markets.

Clive Roberts, a significant shareholder, is also proposed to join as a Non-Executive Director.

Louis Coetzee, the current interim Chairman and CEO, will step down. Further involvement of Coetzee with the Kibo Board is still under consideration.

Review of Johannesburg Stock Exchange Listing

Kibo is reviewing its listing on the Johannesburg Stock Exchange due to substantial costs and limited benefits. An announcement will follow if the listing is canceled.

Debt and Creditor Restructuring

Kibo’s total liabilities were estimated at £2,381,986 as of April 30, 2024. The creditors’ balance includes £860,881 of deferred director and staff salaries and outstanding audit, legal, and listing costs from 2023.

The main assets of the company include:

  • 83,211,746 shares in MAST Energy Development PLC (“MED”) held in escrow
  • £849,253 receivable from MED
  • 134,443,738 shares in Katoro Gold PLC
  • A small portfolio of waste-to-energy projects

Kibo has agreed with RiverFort Global Opportunities PCC Limited (“RiverFort”) to reduce the outstanding debt from £767,205 to £400,000. The remaining debt will have a 10% annual coupon and no conversion rights. It will be repayable in full within 24 months.

Conversion of Trade Creditors and Lenders

Trade creditors and other lenders, totaling £274,265, have agreed to convert their debt into equity. This will result in the issuance of 1,828,431,043 shares and 943,366,667 warrants at an exercise price of 0.015p per share.

Post-Restructuring Balance Sheet

After the restructuring, Kibo expects to have a more sustainable total debt and creditor position of £660,861.

Fundraising and Admission to AIM

Kibo has conditionally raised £500,000 by placing 3,333,333,333 new ordinary shares at 0.015p each. Of this, £100,000 (666,666,667 shares) will settle immediately. The remaining £400,000 (2,666,666,666 shares) is conditional on the new board appointments.

Application for Admission to AIM

The first £100,000 will see immediate admission to trading on AIM, expected around June 13, 2024. The remaining shares will be admitted following the conclusion of board appointments.

Annual General Meeting and Shareholder Approval

At the next AGM in 2024, Kibo will seek shareholder approval to increase the company’s authorized share capital. This will allow for the issuance of conversion shares, warrants, and remuneration shares.

Director Compensation in Shares

The new directors will take a portion of their first six months’ compensation in shares. Mohammed Ashraf will receive 137,500,000 shares, Stefania Barbaglio 55,000,000 shares, and James Parsons 110,000,000 shares.

Options and Warrants Award

New share options, representing 10% of the enlarged issued share capital, will be awarded to Ashraf, Parsons, and Barbaglio. Each will receive 329,782,071 options with a three-year vest and five-year expiry.

Total Voting Rights

Post-admission of the Firm Shares, Kibo’s total issued share capital will be 5,027,614,431 ordinary shares. Following the full implementation of the restructuring plan, the final issued share capital will be approximately 9,893,462,140 shares.

Summary Table of Director Holdings

Director NameCurrent SharesOptions/Warrants% of Current CapitalPost-Restructuring SharesPost-Restructuring Options/Warrants% of Enlarged Capital
Louis Coetzee223,198,427None5.12%298,630,694158,541,6433.02%
Noel O’Keeffe57,234,904None1.31%57,234,90439,816,9970.58%
Mohammed AshrafNoneNone0.00%137,500,000329,782,0711.39%
James ParsonsNoneNone0.00%110,000,000329,782,0711.11%
Stefania BarbaglioNoneNone0.00%55,000,000329,782,0710.56%

Future Outlook

Kibo’s new board aims to maximize value generation from a broader energy perspective, including opportunities in the oil and gas sector in the Middle East and Indian Subcontinent.

Conclusion

Kibo Energy’s restructuring plan aims to address its challenging trading conditions. The proposed changes in leadership and financial strategy reflect a concerted effort to reposition the company for future growth and sustainability. Further updates will be provided as the restructuring progresses.