Investor gets warrants for 35.6 million shares, exercisable at C$0.19
By Devika Patel
Knoxville, Tenn., Jan. 16 – Tethys Petroleum Ltd. said it negotiated a $6 million unsecured loan facility with a Cayman-based private entity.
The 8% loan is due in two years.
The investor also received warrants for 35.6 million common shares, each exercisable at C$0.19. The strike price is identical to the Jan. 15 closing share price.
If the company issues any additional ordinary shares, options, warrants or other equity-linked securities, the investor may surrender the warrant for a “surrender value,” which would be added to the loan principal and be due at maturity. The initial surrender amount is $2.1 million and will decrease by 25% every six months over the loan’s term.
The oil and gas explorer is based in Toronto.
| Issuer: | Tethys Petroleum Ltd.
|
| Issue: | Unsecured loan facility
|
| Amount: | $6 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Warrants: | For 35.6 million shares
|
| Warrant strike price: | C$0.19
|
| Pricing date: | Jan. 16
|
| Stock symbol: | Toronto: TPL
|
| Stock price: | C$0.19 at close Jan. 15
|
| Market capitalization: | C$56.92 million
|
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