30th Oct 2018 09:30
LONDON (Alliance News) - TomCo Energy PLC said Tuesday that it has raised GBP100,000 through a share issue but added that it will have to raise new funds in future.
Shares in TomCo Energy were up 23% at 13.70 pence each in morning trade.
The company has inked a share subscription of 1.2 million new ordinary shares with an existing shareholder at a price of 8.5 pence per share.
The oil shale exploration company also has sold its entire interest in Red Leaf Resources Inc for USD133,333. TomCo made a full impairment against its interest in Red Leaf in 2017 financial year due to 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.
Following the share subscription and disposal, TomCo will have cash resources of GBP335,000.
TomCo said it has sufficient funds to take it beyond the completion of the current field test on its Holliday Block in the US state of Utah and through to late first quarter of 2019. It, however, added that it will need to raise further funds for working capital, loan repayments and project development after the first quarter of next year.
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