Deap Capital Management & Trust Plc has unveiled plans to strengthen its financial position through a capital raising programme, debt restructuring and the introduction of a strategic investor as part of efforts to reposition the company for sustainable growth.
The initiatives were disclosed during the company’s 12th Annual General Meeting held in Lagos.
Chairman of the company, Kenneth Olise, who was represented at the meeting by Non-Executive Director Edmond Ani, said the firm had faced significant challenges over the past decade but had begun a restructuring process aimed at stabilising operations and restoring shareholder value.
According to him, a key aspect of the turnaround strategy involved negotiations over outstanding debts owed by the company. He explained that the liability had risen from about N685 million to over N1.8 billion due to court proceedings before both parties eventually agreed on a full and final settlement of N400 million.
Olise also disclosed that part of the company’s liabilities had been converted into equity following approval from the Securities and Exchange Commission. Under the arrangement, debts valued at N2.03 billion are being converted into 1.49 billion ordinary shares of 50 kobo each at a conversion price of N1.35 per share.
He said the share allotment process is currently ongoing and is expected to be concluded before the end of the first quarter of 2026, after which creditors who opted for the conversion will receive their shares through the Central Securities Clearing System.
The chairman further revealed that the company had secured a strategic investment agreement with Banklink Africa Private Equity Limited, which is expected to inject at least N3 billion into the firm as equity.
According to him, the investment will support the company’s recapitalisation drive and reposition it as a globally competitive non-bank financial services firm with a focus on investment banking activities.
He added that the company has resumed the prompt filing of quarterly and annual returns with regulators, including the Nigerian Exchange Limited and the Securities and Exchange Commission, after several years of non-compliance before the current management assumed office in 2023.
Olise noted that the combined effect of debt restructuring, fresh capital injection and operational reforms is expected to significantly improve the company’s financial standing, with shareholders’ funds projected to move from a negative balance of N2.75 billion as of September 2022 to a positive position of about N2.37 billion by March 2026.
As part of the restructuring programme, shareholders approved a proposal to increase the company’s share capital from N1.5 billion, represented by three billion ordinary shares of 50 kobo each, to N5.03 billion through the creation of 7.06 billion additional shares.
The company also plans to undertake a capital raising exercise through private placement, subscription or other approved financing arrangements, subject to regulatory approvals.
Shareholders further approved a proposal to change the company’s name from Deap Capital & Trust Plc to Critical Minerals Financing Corporation Plc, or any other name that may be approved by the Corporate Affairs Commission.
Olise stated that the entry of the core investor would result in a reconstitution of the board to reflect the new shareholding structure, with some existing directors expected to step down to allow representatives of the investor to join the board.
Speaking at the meeting, Ani said the company was beginning to see signs of recovery, noting that shareholders were witnessing a gradual increase in the firm’s share price for the first time in several years.
He explained that while dividend payments remain an important expectation for investors, management’s immediate focus is on stabilising operations and rebuilding the company after years of financial challenges.
Ani also expressed appreciation to shareholders for their patience and continued support as the company works to reposition itself for sustainable growth and long-term value creation.
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