TomCo Energy plc (AIM: TOM) announces that, further to its announcement of 18 June 2020, following discussion with the Company’s broker regarding the status of the Placing, the Placing has now been terminated in accordance with the terms of the placing agreement between the Company and TPI. Accordingly, the Placing as announced on 17 June 2020, will now not proceed.
Following discussions with Valkor, the Company confirms that a revised JV Agreement has now been entered into and that Greenfield, t he JV company formed pursuant to the JV Agreement and in which TomCo has a 50% interest, has been established .
Pursuant to the amended JV Agreement, Valkor has agreed, subject to Valkor being issued a licence by Quadrise to its MSAR® Technology as set out in the Company’s announcement of 18 June 2020, to assign to Greenfield the benefit of such licence with effect from the date of its grant.
Further, the Company will no longer be required to provide funding to Greenfield of up to US$1.5 million, as was previously envisaged, until such time as TomCo has such funds available. Accordingly, Valkor and TomCo will review and seek to agree, inter alia, the budget for the proposed upgrades to the POSP and phasing of the associated tests pursuant to the JV Agreement, before TomCo commits to any material expenditure . The Company will provide further updates to shareholders in this regard, as appropriate. All other material terms of the JV Agreement remain the same.
As previously announced on 19 March 2020, the Company has taken the decision to postpone the next test of the Turboshale RF technology.
As at 18 June 2020, the Company had available cash resources of approximately £360,000, which, prior to the cost of any works to be undertaken under the JV Agreement and associated upgrades to the POSP which are yet to be agreed, the Board believes is sufficient through to the end of 2020.
Restoration of trading
The Company confirms that trading in the Ordinary Shares on AIM will resume with effect from 7.30 a.m. today.
Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as given to them in the announcement of 17 June 2020.
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