ADM Energy PLC has provided an update on its financing, debt, and asset restructuring exercise. OFX Holdings, LLC, a substantial shareholder, has supported the company as it completes agreements with trade creditors, resulting in significantly reduced liabilities. The total debt has been reduced by approximately £1.1 million through discounted debt settlements and equity transactions. This includes a debt reduction of £204,918 related to amendments to the Blade Oil V, LLC transaction. The remaining debt has been settled with £125,760 in cash and the issuance of 27,885,000 ordinary shares.

ADM Energy has also received £425,000 in cash from subscriptions for the Secured Convertible Loan Note issued by ADM Energy (USA), Inc. The balance of funds is expected to be received over the next 90 days. The terms of the loan note have been amended to attract additional capital and allow the proceeds to be used in wider applications.

OFX Holdings has advanced an additional net £70,000 in cash to ADM Energy in the second half of 2024. In order to focus on the Altoona lease, part of the Blade Oil V, LLC investment, ADM Energy has returned the Texas and Kansas leases, resulting in a reduction of £406,850 of the total maximum consideration associated with the transaction.

The debt restructuring exercise carried out by ADM Energy includes the settlement of certain trade creditors, resulting in a reduction of £339,710 or 48% of the original value settled. The company has also restructured its debt with OFX Holdings, LLC, including amendments to the Blade Oil V, LLC acquisition. As a result of the changes, the total maximum consideration associated with the transaction reduces from £1,614,000 to £1,207,160.

ADM Energy has also reached a debt conversion settlement with OFX Holdings, LLC, involving the issuance of 15,820,000 ordinary shares and 7,910,000 3-year, 1.5p warrants. OFX Holdings has funded £125,000 towards its commitment to the Secured Convertible Loan Note and has reaffirmed its commitment to fund the remaining £125,000 within 90 days.

As part of the negotiations, OFX Holdings has settled approximately £102,000 in creditors on behalf of ADM Energy through the assignment of 20,400,000 shares held by OFX Holdings to the creditor.