Proactive Investors - Kibo Energy PLC (LON:KIBO)'s shares dropped 50% following the announcement of a wholesale corporate restructuring that includes a new board, a financial re-engineering and an equity fundraiser.
The latter likely sparked the sharp decline with the company conditionally raising £500,000 at 0.015p. No surprises then that the stock sank to....0.015p.
Investors were told debt would be reduced to a more sustainable level, while the majority of creditors have been 'assigned to a third party or to be converted into equity'. The company will also look at potentially de-listing from the Johannesburg Stock Exchange.
As part of the overhaul, Kibo is bringing in micro-cap natural resources veteran James Parsons as a non-exec along with shareholder Clive Roberts and City spinner Stefania Barbaglio, who will become Kibo's new chairperson.
So what's the plan for Kibo (current market capitalisation a 'very micro' £64,000)?
Here's a snippet from Friday's statement: "The new board will conduct a detailed review of the company's interests to maximise value generation opportunities from a broader Energy perspective and to improve the company's balance sheet further," the market was told.
"The new board intends to pursue an energy strategy including in the oil and gas sector with a focus on possible opportunities in the Middle East and the Indian subcontinent, including onshore Balochistan in Pakistan."