By Devika Patel
Knoxville, Tenn., Jan. 15 - TomCo Energy plc said it arranged a £5 million equity line of credit with GEM Global Yield Fund Ltd. on Jan. 14.
GEM has committed to purchase up to £5 million of the company's ordinary stock over the course of three years.
Under the agreement's terms, the company may issue a subscription notice requesting that GEM buy a number of shares up to a maximum of 500% of the average daily trading volume in the 15 trading days immediately preceding the notice date.
The shares will be bought at a price equal to 90% of the shares' average closing bid price over the 15 trading days immediately following that date.
GEM retains the right to buy between 50% and 200% of any requested amount of shares.
GEM also received warrants for 34,666,667 shares, which are exercisable at 1.5p for three years.
Proceeds will be used in the development of the Heletz-Kokav-Brur Oil Fields in Southern Israel and for general working capital purposes.
Isle of Man, United Kingdom-based TomCo is engaged in acquiring participations in shallow producing oil wells and drilling prospects.
| Issuer: | TomCo Energy plc
|
| Issue: | Equity line of credit
|
| Amount: | £5 million
|
| Tenor: | Three years
|
| Price: | 90% of average closing bid price over the 15 trading days immediately following notice date
|
| Warrants: | For 34,666,667 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | 1.5p
|
| Investor: | GEM Global Yield Fund Ltd.
|
| Settlement date: | Jan. 14
|
| Stock symbol: | London: TOM
|
| Stock price: | 60p at close Jan. 14
|
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