Tethys Petroleum announce extension of exclusivity period with Olisol Investments

Tethys Petroleum has announced that is has agreed to extend the previously agreed exclusivity period with Olisol Investments Limited by 14 days to 11:59 p.m. Calgary time on December 7, 2015 (as extended, the "Exclusivity Period").

On November 9, 2015 Tethys and Olisol signed a Letter of Intent (LOI) setting out proposed terms upon which Olisol Petroleum Limited, a wholly-owned subsidiary of Olisol (OPL), would provide Tethys with a US$15 million interim debt facility (the "Interim Financing"), subscribe to a C$25.5 million private placement of 150 million new ordinary shares at a price of C$0.17 per ordinary share (the "Placing") and commit to backstop a further equity fundraising of 50 million shares at C$0.17 per share (the "Further Financing").

Following this, on November 19, 2015, Tethys entered into an interim convertible financing facility of up to US$15 million (the "Interim Financing Facility") with OPL. Subject to approval from the Toronto Stock Exchange, the Interim Financing Facility is convertible into Tethys ordinary shares at C$0.17 per share. The original exclusivity period under the LOI expires at 11:59 p.m. Calgary time on November 23, 2015. Having received written notice from Olisol prior to this expiry requesting an extension, as provided for under the LOI, the Company has agreed to extend the Exclusivity Period until 11:59 p.m. Calgary time on December 7, 2015 to enable the parties to continue to finalise the documentation necessary for the Placing and Further Financing.

A condition to the first draw down under the Interim Financing Facility is that Mr Alexander Abramov, a designee of Olisol, and Mr William Wells of Pope Asset Management, LLC, a 19.1% shareholder of the Company, be appointed to the Board of Directors of Tethys (the "Board"). Both individuals have now been appointed to the Board.

Read the article online at: https://www.oilfieldtechnology.com/product-news/24112015/tethys-petroleum-announce-extension-of-exclusivity-period-with-olisol-investments/