Deap Capital Management & Trust Plc plans to strengthen its financial position through a capital raising program, debt restructuring and bringing in strategic investors.
These initiatives are part of efforts to reposition the company towards sustainable growth and were unveiled at the company’s 12th Annual General Meeting held in Lagos.
Kenneth Orise, Chairman of Deap Capital Management & Trust Plc, who attended the meeting with Edmond Ani;
The company’s independent directors said the company had experienced significant challenges over the past decade, but had embarked on a restructuring process aimed at stabilizing its operations and restoring shareholder value.
He said a key aspect of the turnaround strategy included negotiating the company’s excess debt.
He explained that the court proceedings increased the debt from about N685 million to more than N1.8 billion before the parties finally agreed to a full and final settlement of N400 million.
He also disclosed that a portion of the company’s debt has been converted into equity following approval from the Securities and Exchange Commission (SEC). Under the arrangement, debt worth N2.03 billion will be converted into 1.49 billion ordinary shares of 50 kobo per share at a conversion price of N1.35 per share.
He said the share allotment process is currently underway and is expected to be completed by the end of the first quarter of 2026, after which creditors who opt for conversion will receive their shares through the Central Securities Clearing System (CSCS).
Also read: DEAP Capital rebrands to CMFC Plc to focus on critical mineral finance
The chairman further disclosed that the company has entered into a strategic investment agreement with Banklink Africa Private Equity Limited, which will inject at least N3 billion in capital into the company.
He said the investment will help the company recapitalize and reposition it as a globally competitive non-bank financial services company focused on investment banking.
The chairman added that the company has resumed expedited filing of quarterly and annual returns with regulators.
Nigeria Exchange Limited (NGX) and the SEC after years of non-compliance before the current management takes office in 2023.
He said the combined effects of debt restructuring, new capital injection and operational reforms are expected to significantly improve the company’s financial position, with shareholder funds expected to turn from a negative balance of 2.75 billion Naira as of September 2022 to a positive balance of approximately 2.37 billion Naira by March 2026.
As part of the restructuring programme, shareholders approved a resolution to increase the share capital of the company from N1.5 billion (3 billion ordinary shares of 50 kobo each) to N5.03 billion through the issuance of an additional 7.06 billion shares.
The Company also intends to raise capital through private placements, underwriting or other approved financing arrangements, subject to regulatory approval.
Shareholders also approved a proposal to change the company’s name from Deap Capital & Trust Plc to Critical Minerals Financing Corporation Plc, or any other name approved by the Corporate Affairs Committee.
The chairman said that the entry of core investors will result in a reconstitution of the board to reflect the new shareholding structure, and that some existing directors will resign to allow investor representatives to participate on the board.
In response to shareholder comments at the general meeting, he said the company is starting to show signs of recovery, noting that shareholders are seeing the company’s stock price gradually rise for the first time in several years.
He explained that while dividend payments remain a key expectation for investors, management’s immediate focus is on stabilizing operations and rebuilding the company after years of challenges.
The Chairman also expressed his gratitude to shareholders for their patience and continued support as he works to reposition the company towards sustainable growth and long-term value creation.
