DEAP Capital Management & Trust Plc revealed it has executed a Memorandum of Understanding (MoU) to commence a Minerals and Metals Financing initiative across Africa.
The MoU, with Banklink Africa’s Equity Fund II, is expected to support DEAP Capital’s funding base and provide a framework for investment in mineral projects.
As part of the initiative, DEAP Capital will be positioned to operate as a profitable investment banking boutique, mobilizing and financing mineral projects across African markets.
The agreement will cover projects in digitization, energy transition, industrial manufacturing, and advanced technologies.
What the executives are saying
Commenting on the MoU, Dr. Israel Ovirih, Chair of Banklink Africa, said the agreement is designed to support DEAP Capital’s operational alignment, strengthen governance, and provide a framework for project execution.
- He added that the MoU could open new opportunities for African businesses in the metals and minerals sector to access global investment.
- DEAP Capital’s CEO, Anthony Adigwe, said the MoU is expected to improve shareholder value, support institutional capacity building, and contribute to the development of sustainable and bankable mineral projects across Africa.
The company noted that ongoing strategic investment discussions may lead to binding agreements in the near term. The recent MoU could help streamline operations and support a return to profitability.
Market reaction
Market activity in the stock picked up in January 2026, likely due to news surrounding the MoU.
- As of mid-trading on 13 January 2026, the company’s month-to-date share performance has risen over 91%.
- More than 65 million shares have changed hands so far this month, surpassing December’s 43 million.
- Company shares are currently trading at N3.63 on the NGX, up 10% in mid-session, following a 10% gain in the previous session.
- DEAP Capital recorded a 61.02% return in 2025, and year-to-date gains in January 2026 have already exceeded last year’s full-year performance.
Financial Status
In its audited financial statement for the year ended September 2025, published in December, DEAP Capital reported a pre-tax loss of N28.8 million.
- The company also operates with an accumulated loss of N5.2 billion, which effectively wiped out shareholders’ funds, placing it at a negative of N2.3 billion.
- The company also reported a sum of N1,689,154,000, representing a portion of outstanding obligations to creditors under its Managed Funds Account that was converted to equity during the year ended September 30, 2017.
- According to the disclosure, the conversion—along with other managed funds held within the company is being concluded at an issue price of N1.35 per share through the issuance of 1,499,340,000 ordinary shares of 50 kobo each.
The shares will be allotted to consenting non-bank creditors, who were collectively owed N2,024,992,318 as at September 30, 2025.
What to know
DEAP Capital is a Nigeria-based fund management company operating in the capital market, mortgage banking, and oil & gas sectors.
Its main services cover fund and portfolio management, financial advisory, and issuing house functions.
- The company is majorly controlled by state-owned AMCON, which has a 16.6% stake in the company as of September 2025.
- During the year, the company reached an agreement with the Asset Management Corporation of Nigeria (AMCON) to pay N400 million as full and final settlement of a loan originally acquired from Zenith Bank Plc in 2011.
- The facility, which was taken as a margin loan of N685 million, had grown to an outstanding indebtedness of N1.88 billion as of September 30, 2024, following the corporation’s sale and takeover of some of the shares pledged as collateral.
- The company disclosed that it plans to settle the agreed N400 million within the next financial year.
