Business
Update re TSHII
Update re TSHII.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n\n6 June 2023\nTOMCO ENERGY PLC\n(\"TomCo\" or the \"Company\")\n \nUpdate re TSHII\n \nTomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, provides an update with respect to the Company's 100% owned subsidiary, Greenfield Energy LLC's (\"Greenfield\"), potential acquisition of the remaining ownership and membership rights and interests in Tar Sands Holdings II LLC (\"TSHII\") (the \"Membership Interests\"). As previously announced, Greenfield 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 which was scheduled to expire on 30 April 2023 (the \"Agreement\").\n \nFurther to the Company's announcement of 2 May 2023, it has agreed with the counterparty certain amendments to the Agreement such that Greenfield now has an option, at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration of US$17.25 million (formerly US$16.25 million) prior to 6.00 p.m. Salt Lake City Time on 31 December 2023 together with a matching right as described further below. \n \nIt has been agreed that the counterparty may, from 1 July 2023, market its remaining 90% of the Membership Interests or TSHII's assets to third parties on at least as favourable terms as set out in the abovementioned amended Agreement. In the event that the counterparty receives a bona fide offer to purchase the remaining 90% of the Membership Interests or TSHII's assets from a third party, Greenfield shall have 30 days from the date of notice of such offer to match or exceed such offer and to provide payment of US$100,000 towards the purchase price, providing closing of such transaction occurs prior to 31 December 2023.\n \nThe Company remains in discussions to secure a potential funding package for Greenfield, that would, inter alia, enable Greenfield to ultimately exercise the amended Option and pursue its previously announced wider development plans. In this regard, the principal route under active consideration would involve TomCo disposing of a majority stake in Greenfield to a partner(s) in return for, inter ...