Business
Settlement of Loans and issue of shares
Settlement of Loans and issue of shares.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0220N TomCo Energy PLC 14 January 2019 \n\n \n14 January 2019\n \nTOMCO ENERGY PLC\n(\"TomCo\" or the \"Company\")\n \nSettlement of Loans and issue of shares\n \nTomCo Energy plc (AIM: TOM), the oil shale exploration development and technology group, today announces that the loans provided by Chris Brown on 31 December 2017, 24 March 2018 and 11 April 2018 totalling £250,000 (together the \"Loans\") have now been settled in full (the \"Settlement\"). The Loans, which attracted 8% per annum interest, were due for repayment in March 2019.\n \nPursuant to the Settlement, Mr Brown has agreed to accept £100,000 of the Loans be converted into new ordinary shares of no par value in the Company (\"Ordinary Shares\") (the \"Settlement Shares\") at 2 pence per share, being equal to placing price of the latest placing announced on 14 December 2018, resulting in the issue of 5,000,000 new Ordinary Shares to Mr Brown, with the balance of the Loans being repaid in cash. Following the issue of the new Ordinary Shares to Mr Brown, his shareholding will increase to 10,567,400 Ordinary Shares representing 11.74% of the enlarged share capital of the Company. The Board welcomes the increase in Mr Brown's shareholding and thanks him for his continued support, as demonstrated by his willingness to convert a significant proportion of his Loan into new Ordinary Shares at the most recent Placing price. \n \nAs Mr Brown was a director and a substantial shareholder, as defined in the AIM Rules for Companies, of the Company within the last 12 months, the Settlement represents a related party transaction under Rule 13 of the AIM Rules. The directors of the Company consider, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of the Settlement are fair and reasonable insofar as the Company's shareholders are concerned.\n \nAdmission\n \nThe Settlement Shares will rank pari passu with the existing Ordinary Shares and application will be made for the Settlement Shares to be admitted to trading on AIM (\"Admission\"). It is expected that Admission will become effective and dealings in the Settlement Shares will commence at 8.00 a.m. on 18 January 2019.\n \nFollowing Admission of the Settlement Shares, the Company's issued share ...