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TomCo Energy shares plunge as TurboShale placing fails
Shares in TomCo Energy plunged on Thursday after the company said oil shale unit had failed to raise $1.5m from a placing it launched last March.
TomCo set up TurboShale to develop and commercialise an alternative technology for processing oil shale.
It added that it had received an unsecured loan of £100,000 from former chief executive Christopher Brown and now had approximately £160,000 of cash, "which is sufficient for its present requirements until the latter part of H1 2018".
"TomCo and TurboShale are currently reviewing the funding requirements and options for securing funding for TurboShale, which could include TomCo seeking financing in order to provide funding directly to advance TurboShale," the company said.
"However, TomCo now does not anticipate that its current loan to TurboShale of approximately $130,000 will be repaid in the short term or that the fees due to TomCo pursuant to the management agreement with TurboShale will become payable on completion of the next funding round for TurboShale as was to be the case."
TomCo shares were down 23.14% to 2.69p at 1241 GMT.