Red Capital (LSE:REDC) shares soared 42% to 34.8p after it said it had secured binding commitments to raise £1.6m to fund a strategic pivot into Venezuelan energy.
The equity raise is split into a £0.75m placing of 7.5m shares at 10p per share, £0.15m of which will be issued immediately under existing authorities and £0.6m subject to a to‑be‑convened general meeting. A further £0.85m will be provided by a zero‑coupon unsecured convertible loan note which, subject to shareholder approval and FCA and JFSC approval of a prospectus, will convert at 10p into 8.5m shares.
Incoming management, led by proposed Non‑Executive Chairman Scott Gilbert and proposed CEO Greig Gilbert, will subscribe for 3.0m shares at nominal value and those shares will carry 1:1 warrants.
"We see an exceptional opportunity to build a leading energy platform in Venezuela," said Greig Gilbert, Proposed Chief Executive Officer.
The board also intends to change the company name to Apertura Energy and the TIDM to "VZLA" following the requisite shareholder resolutions.
