Tethys receives private investment proposals

Tethys Petroleum announced on Monday that it has received non-binding proposals from private investors, Winston Sanjeev Kumar Soosaipillai and Medgat Kumar to acquire ordinary shares in the company.

The Toronto and London-listed company said the key commercial terms of the share acquisition proposals included that the Investors would each acquire 43,951,698 ordinary shares of Tethys which, calculated separately and based on the total number of ordinary shares currently in issue of 400,004,848, would result in each investor acquiring approximately 9.9% of the enlarged share capital of the company.

It said the price for the ordinary shares would be $0.01593 per share, representing a 24% premium to the volume weighted average price of CAD 0.01726 for the five trading days to November 4, with the total proceeds amounting to approximately$1.4m.

“The company would grant each investor share purchase warrants giving each Investor the right to acquire up to 43,951,698 ordinary shares of Tethys for a period of three years from the grant date,” the board said in a statement.

“The exercise price for the warrants would be $0.031, representing a 138% premium to the VWAP of CAD 0.022 for the five trading days to November 4.”

It said the proceeds would be used for general working capital purposes at the discretion of the newly reconstituted board of directors.