TomCo Energy PLC (AIM:TOM) shares found support with the news that the company had raised £100,000 of gross proceeds via a share sale, with an existing shareholder subscribing for 125 million shares at a price of 0.08p each.
The newly issued equity will represent around 3.9% of the company.
Cash proceeds will help cover anticipated expenditure as the company seeks to progress its plans for its wholly owned subsidiary, Greenfield Energy, in Utah, where it is seeking funding solutions for a US$17.25 million option deal for the Tar Sands Holdings II LLC (TSHII) site located in the Uinta Basin
“The company continues to pursue a number of routes … to secure a potential funding package for Greenfield, that would enable Greenfield to ultimately exercise the option and pursue its previously announced wider development plans,” TomCo said in a statement.
“Such funding exercise is taking significantly longer than expected in the current challenging economic environment, but the company remains in active discussions and the board remains optimistic that an appropriate transaction can be successfully agreed in Q4 2023.”
Investors also likely found positives in the fact that the company has topped up its working capital without undertaking the sort of punitively dilutive placing that some other AIM-market firms have recently endured.
In recent months, a number of micro-cap companies listed in London has seen ‘small money’ equity raises have resulted in share sales at large discounts to market price.
Today, in London, TomCo shares were up 19% at 0.066p.