TomCo Energy PLC Issue of Convertible Loan Note (8379Y)
20 May 2016 - 5:02PM
UK Regulatory
TIDMTOM
RNS Number : 8379Y
TomCo Energy PLC
20 May 2016
20 May 2016
TomCo Energy plc ("TomCo" or the "Company")
Issue of Convertible Loan Notes
TomCo Energy plc (AIM: TOM), the oil mining company (the
"Company") is pleased to announce that further to its announcement
on 19 May 2016, it has now entered into an agreement with Chris
Brown, CEO of the Company, to provide GBP150,000 by way of a loan
convertible into ordinary shares in the Company ("Convertible
Loan"). In addition, the Company has agreed to issue Chris
warrants, the terms of which are set out below (together the
"Transaction").
The funds will be used to provide working capital to the Company
and to pay for initial feasibility work in connection with the palm
oil milling project currently under review.
As Chris Brown is CEO of the Company, the Company's Directors
independent of the Transaction consider, having consulted with the
Company's Nominated Adviser, S.P. Angel Corporate Finance LLP, that
the terms of the Transaction are fair and reasonable insofar as the
Company's shareholders are concerned.
Convertible Loan Note
The Company has agreed to pay interest on the Convertible Loan
at the rate of 5% per annum (such interest to be payable at the end
of the Convertible Loan or settled through conversion) and are
convertible into ordinary shares of the Company either
automatically if an equity placing takes place within six months of
the issue of the Convertible Loan, or at the election of the holder
if no placing occurs. They may be converted at either the placing
price in the event that an equity placing occurs, or at the average
share price from the 20 trading days immediately prior to the
conversion date in the absence of an equity placing. If not
previously converted, the Convertible Loan and accumulated interest
will become repayable on the 5(th) anniversary of the
agreement.
Issue of Warrants
Upon conversion, the Company will issue Chris Brown with 1
warrant for every 2 shares into which the loan and/or the interest
are converted giving the right to acquire new shares at a price of
0.17p (representing a 21.4% premium to the closing mid-price as at
18 May 2016) for a period of two years.
Enquiries:
For further information, please visit www.tomcoenergy.uk.com or
contact:
TomCo Energy plc
Chris Brown (CEO) chris@tomcoenergy.uk.com
Andrew Jones (Chairman) andrew@tomcoenergy.uk.com
SP Angel Corporate Finance LLP (Nomad & Broker)
Stuart Gledhill Tel: +44 (0) 20 3470 0470
Richard Hail
This information is provided by RNS
The company news service from the London Stock Exchange
END
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