Africa Energy Corp. Announces Update to 5:1 Share Consolidation

Africa Energy Corp. has announced an update to its consolidation of common shares, which will reduce the number of shares from 2.4 billion to approximately 479 million. The consolidation was approved by shareholders and is subject to TSX Venture Exchange approval. The record date and effective date is expected to be May 30, 2025, with trading to resume on Nasdaq First North on June 2, 2025. No fractional shares will be issued, and any surplus shares will be sold by the issuer agent.

VANCOUVER, BC, May 22, 2025 - Africa Energy Corp. (TSX Venture: AFE) (Nasdaq First North: AEC) has announced an update to its consolidation of common shares, which will reduce the number of shares from approximately 2.4 billion to approximately 479 million. The consolidation was approved by shareholders and is subject to approval by the TSX Venture Exchange (TSXV).

The consolidation, which is a 5:1 reduction, will take effect on May 30, 2025, with trading expected to resume on Nasdaq First North on June 2, 2025. No fractional shares will be issued, and any surplus shares will be sold by the issuer agent.

This consolidation follows the company's announcement of a non-brokered private placement of common shares and a shares-for-debt transaction on March 31, 2025, which significantly improved the company's financial position. The transactions allowed Africa Energy to fully repay its debt and provide an additional $2.9 million for general working capital purposes and to advance the development of its interest in Block 11B/12B offshore South Africa [1].

The company has also appointed Dr. Phindile Masangane as Head of Strategy and Business Development and appointed her to the company's Board of Directors. Dr. Masangane's extensive experience in the energy sector will be instrumental in advancing the development of Block 11B/12B and bringing the company's world-class gas and condensate discoveries to market [1].

The company's financial position has improved significantly, with cash increasing to $4.7 million and working capital to $4.2 million at March 31, 2025, compared to $2.3 million in cash and $8.2 million of working capital deficiency at the end of 2024 [1].

The consolidation is expected to streamline the company's operations and enhance its financial position. The company remains focused on obtaining the 11B/12B Production Right approval and securing offtake customers, with its current financial position anticipated to be sufficient to achieve these objectives [1].

References:
[1] https://finance.yahoo.com/news/africa-energy-announces-first-quarter-213000051.html
[2] https://www.newswire.ca/news-releases/africa-energy-announces-update-to-consolidation-872726560.html