REG – Mendell Helium PLC – Settlement Agreement & Issue of Equity

Mendell Helium settles broker dispute with warrant exercise, adds 500,000 shares

Mendell Helium has resolved an outstanding obligation with a former broker through a warrant exercise that will add 500,000 ordinary shares to its AIM-listed capital, the company disclosed on 27 July.

The settlement agreement, disclosed in the company’s 11 June admission document, calls for the former broker to exercise warrants at 3 pence per share. The £15,000 proceeds will be applied against money owed by the Kansas helium producer. Admission to trading is expected by 8:00 a.m. on or around 31 July 2026.

Share count climbs.

After the new shares begin trading, Mendell’s total share capital will stand at 341,886,938 ordinary shares of 1 pence each, providing the updated denominator for disclosure calculations under FCA transparency rules. The new equity ranks equally with existing shares.

The producer operates in Kansas through its M3 Helium subsidiary, with the Rost 1-26 well in Fort Dodge as the flagship asset. That well tested at 5.1% helium composition, according to the company overview included in the announcement.

Nick Tulloch, chief executive, is reachable through the company’s investor website. Mendell listed Cairn Financial Advisers as nominated adviser, with SI Capital, Fortified Securities, OAK Securities and AlbR Capital named among its brokers.

Settlement deals have become a common tool for AIM companies managing legacy obligations with advisers and service providers. I tried withdrawing funds early from a junior resource account once; the broker warrants involved made the calculation less straightforward than anticipated. Equity-for-debt arrangements allow companies to preserve cash while closing out obligations that can weigh on balance sheets ahead of development milestones.

The announcement contained no detail on the nature or timing of the original obligation, nor did it break out the former broker’s identity. Corporate advisers in the small-cap helium space have cycled through several firms as the sector matured from exploration to production over the past three years.

Kansas has drawn helium developers for its naturally high concentrations in geological formations. Wells in the region often test between 3% and 6% helium, well above the 0.3% threshold typically needed for commercial extraction. Mendell provided no update on production volumes or offtake arrangements tied to the Rost well.

The company classified the settlement as inside information under UK Market Abuse Regulation. Directors are responsible for the release.

Investor questions can be submitted through the company’s website. Brand Communications handles public and investor relations.