Kazakhstan oil junior Tethys Petroleum Ltd (LON:TPL, TSE:TPL) has confirmed the conversion of debt into equity by its funding partner Oilsol Petroleum.
The conversion is an interim step in a broader funding package agreed recently between the companies.
Some $6.3mln of debt is being converted into just over 63mln new Tethys shares at a price of 10 American cents per share, and it will see Olisol owning 15.8% of Tethys.
Initially, due to regulatory requirements, $3.7mln is being converted and the remaining $2.5mln will be converted later, once personal information forms are approved by the Toronto Stock Exchange.
Separately, negotiations continue to determine the pricing of a larger recapitalisation which will see Olisol’s stake rise to 42%.