Red Capital PLC (LSE:REDC), the Main Market-listed acquisition shell, has risen 22.5% to 30p after announcing a strategic pivot into Venezuelan energy assets, a £1.6 million fundraise, and a plan to rebrand as Apertura Energy Plc.
The company, which has been seeking acquisitions since its 2021 listing, will redirect its focus entirely toward Venezuela, which holds the world's largest proven hydrocarbon reserves but has been largely closed to international capital for a generation due to sanctions, under-investment and operational decline.
The fundraising comprises a £750,000 placing at 10p a share and £850,000 through an unsecured zero-coupon convertible loan note, which will convert into shares at the same price, subject to shareholder and regulatory approval.
Warrants on a one-for-one basis will also be issued, exercisable on completion of the company's first acquisition, with further windows at six, twelve and eighteen months thereafter, expiring in April 2031.
Incoming management, Scott Gilbert as proposed non-executive chairman and Greig Gilbert as proposed chief executive.
He brings more than 35 years of combined experience in energy and industrial businesses across Latin America and Africa. He describes a family heritage in Venezuela's oil and gas sector spanning three generations.
The incoming team will subscribe for three million shares at nominal value alongside the fundraise.
The proposed strategy centres on acquiring upstream licences, drilling and production infrastructure, midstream capability and related services at valuations the incoming board believes materially understate long-term intrinsic value.
The company will seek shareholder approval at a general meeting to complete the fundraise, effect the board changes, and adopt the new name and ticker VZLA.