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TomCo Energy PLC on Monday said it has drawn down £375,000 of the second and final tranche of the £750,000 unsecured convertible loan note facility.
TomCo is a US-operating oil development group focused on unlocking unconventional hydrocarbon resources.
TomCo shares dropped 17% to 0.40 pence each in London on Monday afternoon.
It said that funds under the convertible loan will serve to bridge its financing needs as it seeks to progress and finalise funding negotiations with an unnamed financing party for a larger debt funding package for the development of its Greenfield and Tar Sands Holdings II site.
‘There can be no certainty that such larger funding arrangements will ultimately be successfully secured or as to the terms of any such debt facility,’ TomCo cautioned, however.
Convertible loan subscribers will be issued with a further 50.0 million warrants by the company, each allowing the holder to subscribe to one new ordinary share at an exercise price of 0.75 pence per share.
Additionally, TomCo has received a conversation notice from certain loan subscribers to convert £200,000 from the first tranche into new ordinary shares.
Following this conversion, £175,000 is outstanding from the first tranche, which combined with the second, makes a total of £550,000 principal amount outstanding under the convertible loan.
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