Further to its announcement regarding its collaboration with AGR Energy Holdings Ltd and US$47.7 million financing on 1 July 2015, Tethys Petroleum Ltd has revealed that it has now reached an agreement with Pope Asset Management, LLC. Pope will subscribe for 100 000 000 new ordinary shares on substantially the same terms as AGR Energy Holdings prince. The number of shares for which AGR Energy will subscribe under the AGR Placing will be reduced to 218 003 951 new ordinary shares.
Pope has entered into subscription agreement with Tethys
Tethys Petroleum has invited particular shareholders to subscribe for ordinary shares on similar terms as AGR Energy Holdings. Pope, Tethys’ largest shareholder, has responded by entering into a subscription agreement with the company, subscribing 100 000 000 ordinary shares in the Tethys Petroleum on extremely similar terms and pricing as the AGR Energy Holdings.
Therefore, following the closing of the AGR Energy Holdings and the new Pope Asset Management subscription, AGR Energy is expected to acquire 218 003 951 ordinary shares and, together with its affiliates, will hold approximately 36.0% of the enlarged issued share capital of Tethys. Pope, together with its affiliates, and entities controlled by it will hold approximately 26.6% of the enlarged issued share capital of Tethys, based on assumptions.
As with the AGR Energy Holdings agreement, the price under the Pope subscription will be CAN$0.19 per ordinary share.
Full support of Tethys largest shareholder
John Bell, Executive Chairman said: "We are delighted to have the full support of our largest shareholder, Pope Asset Management and to have secured a substantial commitment from them to participate in the proposed placing alongside AGR Energy. Today's news is a further endorsement from our shareholders of their confidence in the company's strategy, team and strategic partnership with AGR Energy."
Adapted from press release by David Bizley