Tehthys Petroleum’s relationship with Olisol is showing cracks after the pair both issued statements with a list of demands.
Olisol said it “intends to direct Tethys to apply all funds to be repaid to Olisol in connection with outstanding working capital advances, plus accrued interest thereon, to its obligation to subscribe for 181,240,793 ordinary shares at C$0.054 per share.”
However, Tethys rebuked saying “Olisol is required to transfer the full purchase price of CDN$9,787,002.82 for 181,240,793 ordinary shares to Tethys prior to the closing date.”
A spokesperson added: “Olisol also states in its Release that upon completion of the private placement Olisol believes it will hold approximately 244,285,253 representing 37.32% of the total number of issued and outstanding ordinary shares of Tethys.
“Tethys wishes to clarify that there are currently 400,004,848 Tethys ordinary shares issued and outstanding. Upon completion of the private placement to Olisol of an additional 181,240,793 ordinary shares Olisol’s shareholding would be 244,285,253 ordinary shares which would represent 42.03% of the total number of issued and outstanding ordinary shares.”
Tethys has since requested a proposal from Olisol “to resolve certain issues that it feels are important to be agreed prior to completion of the private placement”.
A spokesperson added: “These include a relationship agreement which ensures that all transactions between Tethys and Olisol will be at arm’s length and on normal commercial terms and Olisol shall not
vote on any related party transactions between the Company and Olisol as well as related corporate governance arrangements. The Company remains hopeful that Olisol will provide a proposal to address the issues raised with Olisol in time to allow completion to take place by the outside date of October 27, 2016 as contemplated by the Investment Agreement.”