(RTTNews) – Oil and gas exploration and production company Tethys Petroleum Ltd. announced its Board has received a further approach from independent oil and gas company Nostrum Oil & Gas plc regarding a possible offer for the entire issued and to be issued share capital of Tethys at C$0.2185 per Tethys share in cash or stock, at the election of each eligible shareholder of Tethys.
Following the receipt by Tethys of the Possible Offer, the Company has decided to enter into discussions with Nostrum.
The Board of Tethys, having been so advised by its financial adviser, has agreed unanimously to recommend the formal offer to shareholders of Tethys.
Following the approach, Tethys and Nostrum have negotiated a $5 million loan financing in order to support short-term liquidity of Tethys during the period in which any formal offer may be implemented.
Tethys also said that the $47.7 million financing with AGR Energy Holdings Ltd. and related clawback of shares by Pope Asset Management, LLC will not now proceed.
In view of the alternative structure and terms proposed by AGR Energy, the Board of Tethys determined, after careful consideration, that it was obligated to consider possible alternative corporate and/or financing transactions, including the Nostrum Financing offer.