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(Sharecast News) - ADM Energy has announced the abrupt resignation of its boss Stefan Olivier as the West Africa-focused oil group continues to face a financial crunch, with just 20,000 of cash left available.
Olivier, who co-founded the company when it was called MX Oi, has resigned from his role as executive director and chief executive effective immediately, ADM said, without giving a reason for departure.
Randall Connally, an advisor to the oil and gas industry, was named as his replacement, pending due diligence and regulatory checks.
As stated in its half-yearly results last month, ADM is "operating from a severely constrained working capital position", and currently only has 20,000 of cash available.
However, the company's major shareholder OFX Holdings has agreed to loan 120,000 at a 9% interest rate, payable over 12 months, to help with "immediate obligations and short-term working capital needs".
"With the proposed financing, and with the ongoing support of creditors, the board believes that the company will have sufficient working capital through to 30 June 2025. The directors will continue to carefully monitor the working capital position of the company and will continue to explore financing options," ADM said in a statement.
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