TomCo raises £0.3m to bolster Greenfield's finances

US-based oil developer TomCo Energy announced a fundraise of £0.3m on Wednesday, in a bid to bolster the finances of its Greenfield Energy subsidiary.

The AIM-traded firm said the fundraising comprised a £0.2m placing and a £0.1m subscription, resulting in the ossie of 666,666,667 new shares at a price of 0.045p each.

It said the newly-issued shares would constitute 17.1% of its enlarged issued share capital, adding that the fundraise price represented a discount of about 47.1% to the mid-market closing price on AIM of 0.085p per share on 20 February.

The board said the primary objective of the fundraise was to bolster the financial resources of TomCo’s subsidiary, Greenfield Energy, and its plans concerning the Tar Sands Holdings II (TSHII) site in the Uinta Basin, Utah.

Greenfield currently held a 10% membership interest in TSHII and had an exclusive option, initially exercisable until 31 December 2023, to acquire the remaining 90% of the membership interests for an additional cash consideration of $17.25m, as previously announced.

TomCo said it was currently engaged in discussions with the counterparty to the option to seek a further extension to the exercise period or to explore alternative arrangements.

However, the board said there was no certainty regarding the extension of the option or the agreement on alternative arrangements, nor was it assured that the necessary funding could be secured to complete the potential acquisition of the remaining 90% of the membership interests.

At 1259 GMT, shares in TomCo Energy were down 38.59% at 0.05p.

Reporting by Josh White for Sharecast.com.