Medgat Kumar acquires ordinary shares and warrants of Tethys Petroleum

TORONTO, Nov. 30, 2016 /CNW/ - Medgat Kumar ("Kumar") acquired beneficial ownership and control of an aggregate of 43,951,698 ordinary shares ("Ordinary Shares") in the capital of Tethys Petroleum Limited (the "Corporation") and 96,150,000 Ordinary Share purchase warrants ("Warrants"), pursuant to a non-brokered private placement, for an aggregate purchase price of US$700,001.11. Each Warrant entitles Kumar to acquire one additional Ordinary Share at a price of US$0.031 per Ordinary Share at any time for a period of three years following the closing. The Ordinary Shares acquired by Kumar represent approximately 9.0% of the Corporation's current issued and outstanding Ordinary Shares and the Warrants acquired represent 50% of the issued and outstanding Warrants of this particular class of warrants. On a partially-diluted basis, assuming the exercise of all Warrants held by Kumar, but no exercise of any securities convertible into or exchangeable for Ordinary Shares of the Corporation by any other party, Kumar would have ownership and control over 140,101,698 Common Shares of the Corporation, representing approximately 24.0% of the then issued and outstanding Common Shares. The Warrants contain a restriction on exercise to the effect that, unless and until approval of the disinterested shareholders of the Corporation is obtained, no Warrants may be exercised by Kumar on a date where the result of such exercise would be the issuance of Ordinary Shares that, together with the Ordinary Shares already owned by Kumar on such date, would be in excess of 20% of the number of issued and outstanding Ordinary Shares of the Corporation on such date. The Corporation has covenanted to Kumar to seek such disinterested shareholder approval within 60 days of closing. In the event that disinterested approval is not obtained, Kumar is entitled to a make-whole payment equal to the in-the-money value of unexercised Warrants on the date that shareholder approval fails to be obtained, payable in cash or a short-term, interest-bearing promissory note, at the option of the Issuer.