CALGARY, ALBERTA (By Touchstone, 24 Oct. 2025, Words: 537) — Touchstone Exploration Inc. has conditionally raised £6.32mn ($8.44mn) by way of a private placement of 57,454,545 new common shares in the company with no par value to certain new and existing investors at a price of 11 pence (C$0.206) per common share.
The company is proposing to raise up to an additional £0.68mn before expenses ($0.91mn) by way of a retail offer to its existing shareholders via the bookbuild platform of up to 6,181,818 new common shares at the placing price (together with the common shares issuable under the placing, the “offered shares”). A separate announcement will be made regarding the retail offer and its terms. For the avoidance of doubt, the placing is separate from, and does not form part of, the retail offer.
The company intends to use the net proceeds of the placing, together with any funds raised under the retail offer, to continue its revised 2025 capital program and to satisfy the remaining equity raising requirement under the company’s fourth amended and Restated loan agreement with Republic Bank Limited.
Further details of the placing
Pursuant to the placing, a new investor, Purebond Limited, and certain existing investors have agreed to subscribe for 57,454,545 new common shares at the placing price, to raise gross proceeds of £6.32 million ($8.44mn). The placing price represents a 2.2% discount to 11.25 pence, which was the closing price of the common shares on the AIM market of the London Stock Exchange on 23 Oct. 2025.
Purebond is a UK registered entity controlled and managed by the Kansagra family. A condition of Purebond’s participation in the placing is that it receives the right to appoint one nominated non-executive director to the company’s board of directors while its interest in the company’s total issued share capital remains above 15%. Accordingly, the company has entered into an investor rights agreement with Purebond which confers the board appointment right. Subject to completion of standard regulatory due diligence, Purebond Limited has indicated that it intends to nominate Bhupendra Kansagra, a director of Purebond, as its board nominee. A further announcement will be made in this respect in due course.
Use of proceeds
The net proceeds from the placing and the retail offer are expected to be used to fund the company’s revised 2025 capital program, as outlined below. The planned expenditures include drilling one development well on the company’s central block and capital investments related to the Cascadura natural gas facility compression project, which is scheduled for completion in the second quarter of 2026.
Paul R. Baay, President and Chief Executive Officer, commented:
“This financing fully satisfies our outstanding obligations under our Loan Agreement, positioning us to advance our 2025 capital investment program focused on high-return projects, including drilling on the recently acquired Central block and the installation of the Cascadura compressor.
We are grateful for the continued support of our existing investors and are pleased to welcome Purebond as a significant new shareholder in Touchstone. This strategic investment strengthens our financial position and adds valuable expertise to our Board through the appointment of Mr. Kansagra, a UK-based director with extensive experience in the resource sector and capital markets.“
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