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Acorn Petroleum to raise share capital by 200 per cent ….Plans N1.5billion public offer

Arcon petroleum

The Shareholders  of Acorn Petroleum Plc have approved the increase in share capital of the company by 200 per cent at an Extra-Ordinary General Meeting (EGM) from N1,500,000,000 (One billion, five hundred Million Naira) to N4,500,000,000 . The event which took place January 28, 2016 at Oakwood Park Hotel, Lekki Peninsular attracted large number of shareholders.

According to resolution of the EGM, the approval by the shareholders for an increase in share capital  of Acorn Plc by 2,00 per cent by the creation  and addition thereto of 6,000,000,000 (six billion) ordinary shares of 50kobo each to the company’s existing share capital will help  to reposition the company for strong competition in the downstream sector of the oil and gas industry.

The Acting Company Secretary of Acorn Plc, Mr Deoye Ajidahun said “The new shares is to rank parri passu with the company’s existing ordinary shares .

The Shareholders in a special resolution also approved the amendment of   the Memorandum and articles of Association of the company to reflect the current share capital of the company by altering Clause 5 of the Memorandum of Association and Clause 3 of the Articles  of Association. This resolution shows that the authorized share capital of the company is now N4,500,000,000 divided into 9,000,000,000 ordinary shares of 50kobo each.

According to the resolution, the shareholders directed the board that the altered Memorandum and Articles of Association of the company should be filed at the Corporate Affairs Commission.

On this ground, board of directors was granted the approval to raise additional equity capital via the issuance of up to 3,000,000,000 ordinary shares of 50kobo each at the price of between 50kobo and and 85kobo per share in the company’s unissued share capital by way of a private placement/special placement. The resolution states that the approval is offered mainly to new identified/target investor(s) at a date and upon such terms and conditions to be determined by the Directors and in compliance with all applicable laws and regulations.

Another approval granted at the EGM by the shareholders is the power for the board of directors to appoint relevant professional parties and signing of all documents and or instruments. The board was also given the authority to raise additional capital of up to N1,5000,000,000 through a public offering, rights issuance, sale, debt to equity conversion or other issuance of shares for the purposes of corporate/financial restructuring, settlement of debts, employees and executive compensation on such terms and conditions and for such other purposes which the Directors resolved to be in the best interest of the company subject to obtaining the approvals of relevant  regulatory authorities. The directors received approval of the shareholders to enter into any agreement and/or execute any  other documents necessary for an incidental to effecting  resolutions passed at the EGM

The Shareholders also granted approval for directors to appoint professional advisers and other parties and perform all such other acts and do all such other things as may be necessary for and/or incidental to effecting the above resolutions.

Acorn Petroleum Plc is a Nigerian registered oil and gas company. Established in 1981, the  business of the company today includes trading in refined petroleum products in and out of Nigeria, distribution of refined products through its chain of Acorn branded retail outlets, aviation fueling business and storage and terminal operations.

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