ADM Energy PLC has announced a further investment in OFX Technologies, LLC (OFXT), a technology company focused on providing solutions to the upstream sector of the US oil and gas industry. ADM has acquired approximately 53.1% economic interest in OFXT, which is the 100% owner of Efficient Oilfield Solutions, LLC. The total maximum consideration for the investment is $1,285,000, which includes the issuance of new ordinary shares, warrants, and cash. The investment positions ADM to take advantage of the rapid growth in technology spending by the upstream industry, which is estimated to reach $30 billion by 2025, according to Barclays. The investment is consistent with ADM's mandate to focus on technologies related to the energy industry.
OFXT owns Efficient Oilfield Solutions, which offers a mobile phone app used to track and manage produced water resulting from oil and gas operations and to fulfill regulatory requirements associated with the disposal of oilfield wastewater in Louisiana. OFXT's near-term business plan includes releasing user "Dashboards" for data analytics, completing its "E-Ticketing" solution for trucking operations, and expanding into the Texas market.
The investment is funded through the issuance of new ordinary shares, cash, and warrants. ADM has the option to purchase additional Class A Units in OFXT. OFXH, a substantial shareholder of ADM, will receive a portion of the consideration and will hold approximately 17% of the enlarged share capital of ADM. ADM has also accepted a subscription for its amended secured convertible loan notes to fund the cash commitments associated with the investment.
Overall, this investment allows ADM to expand its portfolio into the energy technology sector and take advantage of the growing technology spending in the upstream industry.