Canadian Overseas Petroleum Limited (LSE: COPL, CSE: XOP, OTC: VELXF) has successfully completed its previously announced equity financing of $2.5 million.
This funding, which was initially disclosed in late December, addresses the company’s immediate financial needs and supports its ongoing operations.
The company highlighted that this expedited financing is crucial for addressing its urgent cash requirements. It enables COPL to continue employing an independent E&P technical consultant, appoint a chief restructuring officer, and sustain its public listings on both the London and Canadian stock exchanges.
In this financing round, COPL issued 1.312 billion new shares to Anavio Capital Partners, a major stakeholder in both equity and convertible bonds of the company. Following this transaction, Anavio now holds a 24.5% stake in COPL. Additionally, Anavio received warrants for each new share purchased, with each warrant exercisable at 0.15p.
COPL also stated that it is considering options to allow both current shareholders and potential investors to participate in future equity placements. However, the company acknowledged its ongoing financial challenges, citing limited liquidity.
The company reminded stakeholders of the forbearance agreement with its senior lender, set to expire on February 29, 2024. COPL emphasized that there is no guarantee this agreement will be extended or that any defaults will be resolved or waived.
