Touchstone Exploration (LSE:TXP) has completed a US$10.9 million financing package comprising new equity and unsecured non-convertible debt, with major shareholder Purebond Limited playing a central role in the transaction.
The fundraising includes the issuance of approximately 26.6 million new shares, representing around 8.2% of the company’s existing share capital before the issue. Management said the financing is intended to reinforce the balance sheet while supporting the company’s continued presence on both the London and Toronto stock exchanges.
Purebond has subscribed for approximately 20.2 million of the newly issued shares and has also invested US$8.4 million through debt securities. Given Purebond’s existing shareholding, the transactions are classified as related-party arrangements under both UK and Canadian regulations and were reviewed by an independent committee of the board.
Pending shareholder and regulatory approvals, the debt securities are expected to be repaid and subsequently reinvested into additional equity. If completed, the process could increase Purebond’s ownership interest from about 20% to approximately 36.3%, significantly strengthening its influence within the company and potentially altering Touchstone’s shareholder structure and governance profile.
The transaction is expected to provide the company with additional financial flexibility while deepening the commitment of one of its largest investors as Touchstone continues to develop its oil and gas operations.
More about Touchstone Exploration
Touchstone Exploration Inc. is a Calgary-headquartered oil and gas company engaged in the acquisition, exploration, development, production and sale of petroleum and natural gas assets. The company’s operations are focused on onshore properties in the Republic of Trinidad and Tobago, and its shares are listed on both the Toronto Stock Exchange and AIM in London.
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