TomCo borrows £0.15m from its own CEO

Oil mining company TomCo Energy announced on Friday that it has entered into an agreement with its own CEO, Chris Brown, to provide £0.15m by way of a loan convertible into ordinary shares.

The AIM-traded firm said that, in addition, it has agreed to issue warrants to Brown.

It said the funds raised will be used to provide working capital to the company and to pay for initial feasibility work in connection with the palm oil milling project currently under review.

“The company has agreed to pay interest on the Convertible Loan at the rate of 5% per annum, and are convertible into ordinary shares either automatically if an equity placing takes place within six months of the issue, or at the election of the holder if no placing occurs,” TomCo’s board said in a statement.

TomCo confirmed that as Brown is CEO of the company, the decision was taken by directors independent of the transaction, who deemed it to be fair and reasonable.