Conico Ltd has announced a series of major corporate actions aimed at strengthening its financial position and resolving an outstanding legal dispute. The company has settled its dispute with Cartwright Drilling Inc over unpaid drilling invoices from the 2022 field season in Greenland. Under the settlement, Conico has paid CAD 322,500 (approximately A$360,555) from convertible loan proceeds, with a further payment of the same amount scheduled for November 2025, and has issued 34,658,000 fully paid ordinary shares to settle its liability. Additionally, 150,000,000 shares are set aside for an independent advisor’s fee, pending shareholder approval. In further efforts to conserve cash and boost working capital, Conico has arranged converting loans totaling $900,000 from sophisticated investors, including a director investment of $43,000. These loans, which accrue interest at 5% per annum and are convertible into shares at a post-consolidation price of $0.008, will be executed after shareholder approval at a general meeting scheduled for July 2025. The company is also planning a fully underwritten, non-renounceable rights offer on a four-for-five basis to raise around $1.19 million. The rights offering, to be conducted on a post-consolidation basis after a proposed one-for-eight security consolidation, has been managed by RM Corporate Finance and is supported by detailed underwriting agreements that include issuance of lead manager fee shares and options. The announcement also outlines detailed timelines for the consolidation process and rights offer events, ranging from the general meeting on 18 July 2025, the effective consolidation on 22 July 2025, to the final entitlement offer closing on 18 August 2025, with post-offer trading commencing shortly thereafter. In an effort to conserve cash, the company also plans to convert several related party debts—including directors’ fees, advisory fees, and broker fees—to shares at the same price as the rights offer, subject to shareholder approval. From a bullish perspective, the company’s proactive steps to resolve its legal dispute with a major drilling contractor and its multi-pronged recapitalisation strategy should be welcomed by investors. The conversion of debt to equity and the rights offer are likely to enhance liquidity and support working capital, while the security consolidation may make the share structure more attractive to the market. On the bearish side, the significant dilution from the issuance of new shares—as indicated by the pro forma capital structure showing a substantial increase in share count—and the reliance on shareholder approval for multiple actions could raise concerns among investors about the short-term impacts on share value and control dynamics. Overall, Conico Ltd’s announcement provides insight into a robust restructuring plan designed to settle legal liabilities and reinforce its capital base, with both potential opportunities and risks for market participants.