LONDON (ShareCast) - (Sharecast News) - Trading in shares of TomCo Energy was suspended on Friday after SVS Securities resigned as broker and terminated a previously announced placing agreement.
The AIM traded oil exploration company said it is pursuing legal advice regarding the legitimacy of SVS's termination of the placing agreement after TomCo said earlier this month that it would place 6.3m shares at 8.5 pence per share to raise just over £0.5m for loan repayments and general working capital.

Currently, TomCo has access to cash resources of £0.25m, enough to fund the company through to the first quarter of next year.

The Isle of Man registered company said in a statement that it "considering its future financing options".

The outfit said that SVS terminated the share placing due to TomCo's decision to postpone the remaining parts of a field test on the Holliday Block in Utah, with the broker claiming that this constitutes a material change in the business that will impact SVS's reputation.

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