TomCo Energy PLC Equity Placing & Further Loan (6496K)
12 April 2018 - 4:01PM
UK Regulatory
TIDMTOM
RNS Number : 6496K
TomCo Energy PLC
12 April 2018
12 April 2018
TomCo Energy plc (AIM: TOM )
("TomCo" or the "Company")
EQUITY PLACING
FURTHER LOAN
TomCo is pleased to announce that it has raised GBP600,000
(gross) by way of a placing ("Placing") of 20,000,000 new ordinary
shares of no par value in the Company (the "Placing Shares")
("Ordinary Shares") at a price of 3 pence per Placing Share
("Placing Price").
In addition, the Company announces that Christopher Brown has
provided a further unsecured loan of GBP50,000 (the "Loan")
(together with the Placing, the "Fundraise"). The Loan, which is in
addition to, and on the same terms as, the loan of GBP100,000
provided by Mr Brown as announced on 28 March 2018, and the
GBP100,000 loan provided by Mr Brown as announced on 2 January
2018, will incur interest of 8% per annum, payable monthly in
arrears, and is repayable in full on 31 March 2019, or earlier at
the Company's election.
The Placing is conditional only upon admission of the Placing
Shares to trading on AIM and was organised by SVS Securities plc,
the Company's broker.
Further to the announcements of 9 April 2018 and 11 April 2018,
the Company will utilise the net proceeds of the Fundraise to fund
TurboShale Inc. ("TurboShale"), the Company's 80% subsidiary,
through to the completion of the proposed field test programme (the
"Field Test Programme"). The Field Test Programme is expected to
commence on site in August 2018 and is expected to take four to
six-months to complete, and is expected to cost approximately
GBP500,000. In addition, the Company intends to explore asset level
financing as a potential way of reducing costs. It will comprise,
inter alia, re-running the historical test programme in order to
obtain data to confirm the validity and efficacy of TurboShale's
technology in the Company's Holliday Block for extracting oil shale
on a commercial basis, based on a historical programme conducted by
a group of oil majors in the early 1980s, with the ultimate goal of
moving towards production on the Company's Holliday Block leases.
The Company looks forward to updating shareholders in due
course.
Funds from the Fundraise will also provide additional working
capital to the Company in the short term. Accordingly, the
Directors believe that the Company has sufficient working capital
through to, at least, October 2018, although completion of the
Field Test Programme is expected to require additional funding. The
Directors are confident that such funding will be available at the
appropriate time, although there is no guarantee that such funding
will be available.
Admission
The Placing Shares will rank pari passu with the existing
Ordinary Shares and application will be made for the Placing Shares
to be admitted to trading on AIM ("Admission"). It is expected that
Admission will become effective and dealings in the Placing Shares
will commence at 8.00 a.m. on 19 April 2018.
Following Admission of the Placing Shares, the Company's issued
share capital will consist of 48,917,800 Ordinary Shares with
voting rights. There are no Ordinary Shares held in treasury. The
figure of 48,917,800 may be used by shareholders, following
Admission, as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.
Related Party Transaction
As Mr Brown is both a previous Director and substantial
shareholder in the Company, being interested in 19.56% of the
Company's current issued share capital, the Loan is deemed to be a
related party transaction under the AIM Rules for Companies. The
Directors of the Company, having consulted with Strand Hanson
Limited, the Company's Nominated Adviser, consider that the terms
of the Loan are fair and reasonable insofar as the Company's
shareholders are concerned.
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) +44 (0) 20 3823 3635
John Potter (CEO)
Strand Hanson Limited (Nominated Adviser)
James Harris +44 (0) 20 7409 3494
Richard Tulloch
James Dance
SVS Securities plc (Broker)
Tom Curran +44 (0) 20 3700 0093
Ben Tadd
Lionsgate Communications (Financial PR)
Jonathan Charles +44 (0) 20 3697 1209
For further information, please visit www.tomcoenergy.uk.com
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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