TomCo Energy PLC (AIM:TOM, OTC:TMCGF), a US-focused oil development group, said its equity fundraising efforts have generated £500,000 ($676,575).
The company brought in new cash via a £400,000 placement and a £100,000 subscription for new shares, valued at 0.08p each.
The freshly minted stock will account for nearly 20.7% of the company’s enlarged issued share capital.
Concurrently, TomCo has terminated its convertible £1 million loan note facility.
The funds raised are aimed at substantially replacing the cancelled facility and bolstering the company's projected expenditure as it advances its plans for its subsidiary Greenfield with regard to the Tar Sands Holdings II site in Utah.
Greenfield holds a 10% membership interest in the site and has an exclusive option to purchase the remaining 90% for an additional $17.25 million by 31 December 2023.
TomCo is currently in talks to secure a potential funding package for Greenfield that would allow it to exercise this option and pursue its broader development plans. It hopes to finalise plans in the third quarter.