ADM Energy appoints new CEO amid financial crunch

Published 21/02/2025, 15:26
ADM Energy appoints new CEO amid financial crunch

LONDON - ADM Energy PLC (AIM: ADME), an investing company in the natural resource sector, has undergone significant board changes and provided an update on its working capital situation. Stefan Olivier has stepped down as Executive Director and CEO, effective immediately, the company announced. Randall Connally is expected to be appointed as the new CEO, pending due diligence and regulatory approvals.

Claudio Coltellini, who previously served on the board and resigned in December 2024, has been appointed as a Non-executive Director. His return is aimed at supporting ADM’s focus on its U.S. investments in JKT Reclamation, LLC, and Vega Oil and Gas, LLC, especially after the board changes.

The company also disclosed a severely constrained working capital position, with only approximately £20,000 in cash available. To address immediate financial obligations and short-term needs, major shareholder OFX Holdings, LLC, owned by Coltellini, has committed up to £120,000 in financing. This support will be provided in three tranches over the next 90 days and is structured as a 12-month loan at a 9.0% annual interest rate.

ADM Energy believes this financing, along with creditor support, will sustain its working capital through to June 30, 2025. The company’s directors are actively exploring additional financing options to manage the working capital position.

The funding from OFX Holdings constitutes a related party transaction, as Coltellini is both a substantial shareholder and a director of ADM. Other directors, with the exception of Coltellini, have consulted with the company’s nominated adviser, Cairn Financial Advisers LLP, and deem the terms of the financing fair and reasonable for shareholders.

This announcement contains inside information as per Market Abuse Regulations and is now in the public domain. The company’s shares are traded on the AIM market of the London Stock Exchange (LON:LSEG) and on the Berlin and Frankfurt Stock Exchanges under the ticker P4JC. This article is based on a press release statement from ADM Energy PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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