(Alliance News) - TomCo Energy PLC on Wednesday said it cancelled a loan facility as it was replaced by another fundraise, focused on financing its subsidiary's acquisition of a tar mining services provider in Utah.
The oil development group operating in the US said the unsecured committed facility for up to GBP1.0 million had GBP25,000 principal amount outstanding.
Further, the company said it raised GBP500,000 via placing 625.0 million new shares at 0.08 pence per share. It said the fundraise shares will represent about 21% of the company's enlarged issued share capital.
The offer is a discount of around 19% to the firm's closing share price of 0.0985p on Tuesday. TomCo shares fell 8.0% to 0.087p per share on Wednesday morning in London.
The fundraise is to materially replace TomCo's facility and provide funds to the company's expected spending as it progresses plans for its subsidiary Greenfield Energy LLC fully buying tar mining services provider Tar Sands Holdings II LLC in Utah. Last week, TomCo said Greenfield will buy the remaining 90% stake in the company for USD17.3 million. Greenfield currently holds the other 10%. TomCo expects the transaction to close in the third quarter of 2023.
By Tom Budszus, Alliance News reporter
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Tomco Energy (TOM)