(Sharecast News) - TomCo Energy announced on Monday that it was drawing down the initial £0.25m tranche of its £1m convertible loan facility, which it announced on 30 March.
The AIM-traded firm said the funds were expected to be received on or around 26 April.
Under the terms of the facility, the company would issue 41,666,667 warrants to the convertible loan subscribers, exercisable for three years from the date of drawdown.
Each warrant would provide the holder with the right to subscribe for one new share at an exercise price of 0.6p each.
"In addition, Novum Securities - the company's broker - will be issued 10 million warrants, with each such warrant affording the right to subscribe for one new ordinary share at an exercise price of 0.6p per share for a period of two years from the date of drawdown of tranche one," the company's board added in its statement.
At 1228 BST, shares in TomCo Energy were down 9.09% at 0.3p.
Reporting by Josh White for Sharecast.com.
Tomco Energy (TOM)