Financing agreement was negotiated with investor AGR Energy
By Devika Patel
Knoxville, Tenn., July 1 – Tethys Petroleum Ltd. said it plans a $47.7 million private placement of stock and $5 million convertible loan with AGR Energy Holdings Ltd. The loan will settle in two tranches of $2.5 million each.
The company will sell 318,003,951 ordinary shares at C$0.192 per share. The price per share reflects a 12.94% premium to the June 30 closing share price of C$0.17.
The first-tranche loan has a 9% coupon, and the second tranche will have a 12% coupon. The loan converts to common stock the lesser of C$0.192 and 115% of the volume weighted average price of the ordinary shares during the 30 trading days preceding the conversion.
The oil and gas explorer is based in Toronto.
| Issuer: | Tethys Petroleum Ltd.
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| Issue: | Ordinary shares, convertible loan
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| Amount: | $53.7 million
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| Warrants: | No
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| Investor: | AGR Energy Holdings Ltd.
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| Pricing date: | July 1
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| Stock symbol: | Toronto: TPL
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| Stock price: | C$0.17 at close June 30
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| Market capitalization: | C$57.21 million
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| Shares
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| Amount: | C$61,056,759, or $47.7 million
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| Shares: | 318,003,951
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| Price: | C$0.192
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| Loan
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| Amount: | $5 million
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| Coupon: | 9%, 12%
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| Conversion price: | The lesser of C$0.192 and 115% of the volume weighted average price of the ordinary shares during the 30 trading days preceding the conversion
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