Deap Capital Shareholders Approve Restructuring Plan
Shareholders of Deap Capital Management & Trust Plc have endorsed the company’s restructuring efforts,
This was one of the major highlights at the company's combined Annual General Meeting (AGM) for the financial year 2024 and 2025.
The company’s meeting saw overwhelming approval for initiatives aimed at strengthening its financial position, including a capital raising programme, debt restructuring, and the introduction of a strategic investor.
The move is expected to transform the company’s fortunes, with shareholders’ funds projected to shift from a negative balance of N2.75 billion to a positive N2.37 billion by March 2026.
Shareholders also approved a proposal to increase the company’s share capital and change its name to Critical Minerals Financing Corporation Plc.
”We’re beginning to see signs of recovery, with our share price gradually increasing for the first time in years,” said Edmond Ani, Non-Executive Director, who represented the Chairman, Dr. Kenneth Olise.
Shareholders are optimistic about the company’s new direction, applauding management’s efforts to stabilise operations and rebuild for sustainable growth.
Mr. Edmond Ani why addressing the shareholders, said the firm had experienced significant challenges over the past decade but had embarked on a restructuring process aimed at stabilizing its operations and restoring shareholder value.
According to him, a key aspect of the turnaround strategy involved negotiations with the 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.
He also disclosed that part of the company’s liabilities had been converted into equity following approval from the Securities and Exchange Commission (SEC). 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 recapitalization drive and reposition it as a globally competitive non-bank financial services firm with a focus on investment banking activities.
The Chairman added that the company has resumed the prompt filing of quarterly and annual returns with regulators, including the Nigerian Exchange Limited (NGX), and the SEC, after several years of non-compliance before the current management assumed office in 2023.
He 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 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 that may be approved by the Corporate Affairs Commission.
According to Mr. Ani, the entry of the core investor will 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.
He explained that while dividend payments remain an important expectation for investors, management’s immediate focus is on stabilizing operations and rebuilding the company after years of challenges.