TomCo Energy PLC (AIM:TOM, OTC:TMCGF) shares dropped 35% on Monday, falling to 0.035p, impacted by expected new equity dilution, after it announced a renewed partnership with Valkor that leaves the pair jointly controlling Greenfield Energy on a 50:50 basis, as the AIM-listed group looks to progress oil-sands opportunities in Utah’s Uinta Basin.
The reset comes with balance-sheet engineering. Valkor agreed to amend Greenfield’s long-standing loan facility and settle about half of the amended $799,500 balance through equity in TomCo, taking 290.5 million new shares at 0.1p.
TomCo highlighted that the price represents an 81.8% premium to TomCo’s 0.055p mid-market close on Friday. The remaining balance now falls due on 23 February 2027, with interest now fixed at 2.70%, compounded annually, and can be prepaid without penalty.
Alongside the loan conversion, meanwhile,TomCo raised £550,000 gross at 0.03p, a 45.5% discount to Friday's price.
Cash proceeds from the equity raise, which comprised a £400,000 placing and a £150,000 subscription, are earmarked for additional working capital as the group said it will pursue its stated strategic objectives.