TomCo Energy plc (AIM: TOM), the oil shale exploration, development and technology group, focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that the Company has been informed by SVS Securities plc (“SVS”) that, following the Company’s announcement of 9 November 2018 regarding the postponement of the remaining part of TurboShale Inc’s field test on the Company’s Holliday Block in Utah, including the ‘live’ testing stage.
SVS has served termination of the placing agreement (“Placing Agreement”) relating to the placing announced on 5 November 2018, with immediate effect. SVS has informed the Company the reason for terminating the Placing Agreement is that in their opinion, SVS considers:
· “There has been a material change in the business of or in the financial or trading position of the Company and/or any member of its group; and/or
· SVS’s name or reputation is likely to be prejudiced by continuing as the Company’s placing agent.”
The Board of the Company (the “Board”) confirms that all material information was in the public domain at the time the Placing Agreement was entered into. Accordingly, the Company is taking legal advice as to whether SVS’s termination of the Placing Agreement is valid.
SVS has also informed the Company that it has terminated its broker appointment with immediate effect. The Company confirms that it will seek to appoint a new broker as soon as practicable.
The Company confirms that it currently has cash resources of approximately £250,000, which the Board believes is sufficient to fund the Company through to late Q1 2019. The Company is considering its future financing options.
As a result of the above, the Company has requested the suspension of trading in the Company’s ordinary shares of no par value on AIM from 7.30 a.m. today, pending a further announcement by the Company.
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