TomCo Energy PLC (AIM:TOM) said it obtained an unsecured facility of up to £750,000 through a convertible loan note instrument and associated securities.
The funding package was introduced to the company by Novum Securities, the company’s broker, and is intended to bridge the company's financing requirements as the board seeks to further progress and finalise negotiations with a potential financing party for a larger debt funding.
"This convertible loan provides the company with bridge financing whilst we seek to further progress and finalise negotiations with a potential financing partner for a larger debt funding package that, if secured, would enable the company to execute on its development plans for Greenfield and the TSHII site,” TomCo chief executive John Potter said in a statement.
“Whilst there can be no certainty that a suitable funding package will ultimately be secured, these are very exciting times for TomCo and I look forward to making further announcements in due course."
The loan note issuance is split into two tranches of £375,000 with the first already drawn by the company.
Subscribers for loan notes will also receive share warrants, exercisable for 0.75p per share.