TomCo Energy plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, has announced that the Company has raised, in aggregate, gross proceeds of £300,000, by way of a £200,000 placing and a £100,000 subscription, for, in aggregate, 666,666,667 new ordinary shares of no-par value each in the capital of the Company at a price of 0.045 pence per share.
The Fundraise Shares will represent approximately 17.1 per cent. of the Company’s enlarged issued share capital. The Fundraise price represents a discount of approximately 47.1 per cent. to the mid-market closing price on AIM of 0.085 pence per Ordinary Share on 20 February 2024, being the latest practicable business day prior to the publication of this announcement.
The Fundraise has been undertaken to provide additional funds towards the Company’s anticipated expenditure as it seeks to progress its plans for its wholly owned subsidiary, Greenfield Energy LLC, in relation to the Tar Sands Holdings II LLC site located in the Uinta Basin, Utah, United States. As previously announced, Greenfield owns a 10% Membership Interest in TSHII and had an exclusive option, at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration of US$17.25 million up to 31 December 2023, together with a matching right as detailed in the Company’s announcement of 6 June 2023.
