Business
Convertible Loan Note Facility
Convertible Loan Note Facility.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n \n \n 30 March 2023\n \n \n \n TOMCO ENERGY PLC\n \n \n \n (\"TomCo\" or the \"Company\")\n \n \n \n \n \n \n \n \n Convertible Loan Note Facility, Issue of Initial Associated Warrants\n \n \n \n \n and Further Extension of TSHII Option\n \n \n \n \n \n \n \n \n TomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that the Company has obtained an unsecured committed facility of up to £1,000,000 via a convertible loan note instrument and associated subscription and put option agreement (together, the \"Convertible Loan\") entered into with certain subscribers introduced by Novum Securities Limited (\"NSL\"), the Company's broker, as further detailed below.\n \n \n \n \n \n The Convertible Loan is intended to further bridge the Company's general working capital requirements, to the extent required, as the Board seeks to finalise due diligence and documentation in respect of its preferred arrangements with a potential financing party for a funding package to enable the Company to execute on its previously stated development plans for its wholly owned subsidiary, Greenfield Energy LLC (\"Greenfield\") and the Tar Sands Holdings II LLC (\"TSHII\") site. These plans include, inter alia, securing the remaining 90% of the Membership Interests in TSHII, with its 760 acres of land and a large mining permit in Utah, USA, constructing two oil sands processing plants and associated infrastructure on the TSHII site, and drilling a series of in-situ oil recovery wells.\n \n \n \n \n \n As previously announced, Greenfield currently owns a 10% Membership Interest in TSHII and holds an exclusive option (the \"Option\"), exercisable at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration of US$16.25 million which was scheduled to expire on 31 March 2023 (the \"Agreement\"). To allow additional time for the abovementioned funding package to be secured, the Agreement has now been varied in order to further extend the exercise period of the Option. Accordingly, Greenfield may now exercise the Option, at its sole discretion, by delivering a notice of exercise on or before 30 April 2023 and making payment of the US$16.25 million cash consid...