TomCo Energy plc (AIM: TOM), the oil shale exploration, development and technology group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that it has raised £100,000 through the subscription of 1,176,471 new ordinary shares of no par value ("Ordinary Shares") (the "Subscription Shares") with an existing shareholder at a price of 8.5 pence per Subscription Share (the "Subscription"). The Subscription is conditional only upon admission of the Subscription Shares to trading on AIM.
In addition, TomCo has agreed, conditional upon receipt of funds, to dispose of its entre interest in Red Leaf Resources Inc. ("Red Leaf") for a total consideration of US$133,333 (the "Disposal"). Following delays in the development of Red Leaf's EcoShale™ technology and Total E&P USA Oil Shale, LLC's decision in 2016 not to proceed with Red Leaf's early production system, TomCo made a full impairment against its interest in Red Leaf during the financial year ended 30 September 2017 and accordingly, its interest in Red Leaf was held at nil.
Following the Subscription and Disposal, TomCo will have cash resources of approximately £335,000. As a result, TomCo will have sufficient funds to take it beyond the completion of the current field test on its Holliday Block in Utah and through to late Q1 2019. The Company will need to raise further funds for working capital, loan repayments and project development beyond that time.
The Subscription Shares will rank pari passu with the existing Ordinary Shares and application will be made for the Subscription Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Subscription Shares will commence at 8.00 a.m. on 8 November 2018.
Following Admission of the Subscription Shares, the Company's issued share capital will consist of 63,294,270 Ordinary Shares with voting rights. There are no Ordinary Shares held in treasury. The figure of 63,294,270 may be used by shareholders, following Admission, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.