Published: February 24, 2016 |

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Tethys Petroleum has confirmed it received $1million from Kazakh group Olisol Investments last week and it has now signed amended terms for a proposed recapitalization of the company.

In a statement on Monday afternoon, in London, the company said that it had received the $1million as part of a previously agreed $15 million convertible debt facility.

It is agreed that Oilisol will convert all of the facility, except that $1 million, plus accrued interest of around $6.25 million into ordinary shares.

The conversion shares will represent about 15.6 percent of Tethys enlarged share capital.

Olisol agrees to work with a Kazakhstan bank to secure a $10million loan for the company, and it also agrees to provide working capital to Tethys to allow its operations to continue whilst a separate recapitalization is complete.

The Kazak investor is to subscribe for some 181million new shares to recapitalize the company. The placing price is still subject to negotiation. And it is anticipated that the placing will see Olisol’s stake in the company increase to 42 percent.

Olisol’s Alexander Abramov will subsequently be appointed co-chairman, alongside current executive chair John Bell (who will subsequently be non-executive) and Julian Hammond will continue day-to-day management of the company in his current role as chief executive.

In the statement, Bell said: “We are hopeful that the Term Sheet provides a framework for the completion of the funding under the interim facility and negotiation of satisfactory terms for revisions to the placement under the previously announced investment agreement which will provide Tethys with much needed funding.”

“In entering into this agreement, Tethys has gained a strong in-country strategic partner which has committed to remaining a minority shareholder, and significant funding to ensure the Company’s continued operations.”

Source: (February 23, 2016) Proactive Investors

About Tethys Petroleum
Tethys Petroleum Limited’s strategy is to create shareholder value by building an oil and gas exploration and production company focused on Central Asia in areas with substantial oil and gas potential, building on the strengths of its management team and with a mix of short-term cash flow and upside potential. Currently Tethys has projects in Kazakhstan, Tajikistan and most recently Uzbekistan. Tethys is listed on the Toronto Stock Exchange in Canada and on the Kazakhstan Stock Exchange.

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