Tethys Share Discussion Threads

[naimanka74] 29/11/2016 15:04

"Market the Company's gas sales for export" - I think any gas sales now desperately needed - export sales are at least 12-14 months away as there are pipeline issues, that's REDFLAG #1 in the RNS as it's just not true/feasible.

The issues with KazTransGas need to be resolved otherwise their money will evaporate quickly. No Bank will restructure the debts unless there are resumed sales of both gas and oil, so the Olisol issues need to be addressed in parallel.

It's a stay of execution, no more, unless sales/production resume, we must hope that the board has done its due diligence properly otherwise ....

[casual47] 29/11/2016 14:40

Also, doing the placing at this low price could mean that it is very, very, very unlikely we will see anything like 10 pence a share ever again.

[casual47] 29/11/2016 14:37

TI, it's good news in the sense that the threat Olisol poses to TPL (the listed entity) has been eliminated.

It is bad news in that it is giving away a huge chunk of the company for peanuts, officially putting a valuation on it based on 1.4 pence per share, with no guarantee of adding shareholder value for us PIs and potentially leaving us open to further dilution based on this ridiculous price.

I was hoping there could be other interested parties wanting to outbid the Kumars but apparently there weren't any, which kinda leaves us at the mercy of Kumar & Kumar.

[hguess16] 29/11/2016 14:33

Relief all round !. At least no more worries about the Cayman lender for a while !.
Let's hope Winston and Megdat are able to deliver some real value to Tethys !.

[seroserio] 29/11/2016 14:26

And the market reacts-£1250 traded so far. :-)

[temporarily insane] 29/11/2016 14:25

Hey Casual47, would you consider this good news, or am I the only one???????

[casual47] 29/11/2016 14:14

I presume the main objective of this exercise was to dilute Olisol sufficiently in order to be able to take control of the ship again. And the money is just an extra to help them get over the next few bumps.

[temporarily insane] 29/11/2016 13:46

Cheers Casual47 for the heads up. At last, POSITIVE company changing news.

[neilyb675] 29/11/2016 13:45

Done✔👀;🙌

[temporarily insane] 29/11/2016 13:44

Wow and I see the market makers have not woken up yet. Probably waiting for the Canadians to wake up.

Up 33% on TSX with a 1000 buy today then eh. Which means no movement on LSE.

[devonlad] 29/11/2016 13:39

You the daddy Casual, I bet Olisol are non to pleased. They need to sort out the issues with Olisol though short term and get rid of them long term. They obviously have some in country clout though, this is something that Tethys has sorely missed from the start. I reckon they are confident of getting a gas export licence though, that is the cherry and will have an instant impact.

[casual47] 29/11/2016 13:36

I beat the RNS service by a whole 2 minutes!

[devonlad] 29/11/2016 13:27

Market the Company's gas sales for export;

[casual47] 29/11/2016 13:19

Hurrah! Progress

Completion of Private Placements

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Nov. 29, 2016) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) ("Tethys" or the "Company") today announces that it has completed the previously announced private placements ("Placements") with Winston Sanjeev Kumar Soosaipillai and Medgat Kumar (each, an "Investor" and together, the "Investors"). The Placements bring much needed funding to the Company as well as provide it with strong in-country partners in Kazakhstan and internationally.

The key commercial terms of the Placements are summarized below.

Summary of Placements

The Investors, through nominee companies, have each acquired 43,951,698 ordinary shares of Tethys which results in each Investor individually acquiring approximately 9.0% of the enlarged share capital of the Company.

The price for the ordinary shares is US$0.01593 per share representing a 24% premium to the five day volume weighted average price preceding the November 6, 2016 offer date ("VWAP"). The total proceeds amount to approximately US$1.4 million.

The Company has granted each Investor share purchase warrants giving each Investor the right to acquire up to 96,150,000 ordinary shares of Tethys for a period of three years from the grant date. The exercise price for the warrants is US$0.031 representing a 138% premium to the VWAP. If both Investors were to exercise all of the Warrants granted to them, each Investor would own approximately 19.9% of the ordinary shares of the enlarged share capital of the Company. Neither Investor may exercise any warrants if after such exercise, the Investor would become a 10% shareholder of the Company until such time as the Toronto Stock Exchange ("TSX") has approved a personal information form (a "PIF") to be submitted by such Investor. Further, the Investors may not exercise more than an aggregate of 12,097,816 warrants unless shareholder approval has been obtained for such exercise. The Company has agreed to call and hold a shareholder meeting for shareholders to consider, and if thought fit, approve the exercise of such warrants as soon as reasonably practicable and in any event within 60 days from the date hereof. The Company has also agreed that should the shareholders not approve the exercise of such warrants, the Company will be required to pay to the Investors, for each outstanding warrant that may not be exercised, the amount by which the then VWAP exceeds the exercise price of the warrant.

In connection with the Placement, the Investors have entered into voting agreements with Pope Asset Management or its affiliates, pursuant to which such shareholders have agreed to vote or use their commercially reasonable efforts to cause the voting of shares held by them in favour of the warrant exercise. In total, such shareholders hold approximately 16% of the currently outstanding shares.

The Company has agreed to work with Annuity Life and Reassurance ("ALR"), an affiliate of Pope, to convert approximately US$168,000 of debt owing to ALR into approximately 12,000,000 ordinary shares, all subject to approval by the TSX. Any such shares so issued will be subject to the voting agreement referred to above.

Each of the Investors will be appointed to the Board of Directors of the Company once the Investor has filed a PIF with the TSX, provided that each Investor will agree to resign from the Board of Directors if the TSX does not approve the PIF so filed.

The Company intends to use the proceeds of the Placements for general working capital purposes.

The Investors have entered into a Relationship Agreement (the "Relationship Agreement") with the Company which addresses, inter alia:
the composition of the Board of Directors and Audit Committee and Board nomination rights to each Investor for so long as the Investor owns at least 9% of the outstanding ordinary shares;
a requirement to ensure Investors and Tethys comply at all times with applicable securities laws and stock exchange requirements and its Articles of Association;
a requirement that any transactions between Tethys and the Investors will be at arm's length and on normal commercial terms and the Investors will not vote on any transactions where they are a related party;
a limitation on the Company's ability to enter into financing transactions involving convertible debt of the Company for a period of 12 months without the Investor's consent;
a limitation on the ability of the Investors to transfer any of the ordinary shares acquired by them for a period of 12 months; and
a participation right in favour of the Investors for so long as they own at least 9% of the outstanding ordinary shares, that will enable them to maintain their pro rata ownership in the Company in the event that the Company does dilutive offerings in the future, subject to certain exceptions.

The above is a summary of certain terms of the Relationship Agreement. For a complete understanding of the terms of the Relationship Agreement, investors or other interested parties should review the full text of the Relationship Agreement, a copy of which is available on SEDAR at www.sedar.com.


A good working relationship has already been established between the Company and the Investors who have provided valuable assistance to the Company to begin to:
Favorably resolve the detrimental issues the Company has been facing in Kazakhstan;
Obtain a bank loan from a reputable bank in Kazakhstan for the Company's subsidiary Tethys Aral Gas LLP to enable it to repay and restructure current loans and to fund operations;
Market the Company's gas sales for export;
Improve the pricing of Tethys' oil and gas products; and
Engage with the Company's current corporate lenders with a view to restructuring existing loan terms in order to improve cash flow.

[neilyb675] 29/11/2016 11:19

Howwwwwwwwwwwwww much longer !!!!!!👀

[casual47] 28/11/2016 23:42

Hard to say. They had nearly 7.5 million USD current "Trade and other receivables" end of September 30 so who knows how much of that they managed / will manage to turn into cash.

I'd be very surprised/shocked if they couldn't get through past Xmas.

[naimanka74] 28/11/2016 22:46

The placing is allowed under TSX, however the warrants are not (clearly defined), the up to 20% issuance without shareholder approval is meant to be used in crisis times, Tethys clearly are in a crisis, albeit self inflicted, however the warrants can be viewed as a control by stealth move (it can be argued) and therefore TSX approval not automatic nor guaranteed, so late money/approval most likely explanation for any delay. Any idea how long their (or I guess Olisols) money will last without any income?

[hguess16] 28/11/2016 20:07

LFDKMP,.
Isiah Berlin's essay on Tolstoy's view of history " The fox knows many things,but the hedgehog knows one big thing".
Hope my big idea comes to fruition !.

[lfdkmp] 28/11/2016 18:58

"This is not conjecture, but a sincere wish.."

Guaranteed then!

[temporarily insane] 28/11/2016 18:47

the_isolator, any chance you could post Olisols note?