Sound Energy to redeem £1m loan early, dodge final interest payment
Sound Energy's shares fell more than 1% after it agreed to the early redemption of an existing £1m loan to simplify its balance sheet and dodge the cost of a final interest payment.
FTSE AIM 100
3,940.77
09:10 28/05/24
FTSE AIM 50
4,408.50
09:10 28/05/24
FTSE AIM All-Share
810.89
09:10 28/05/24
Oil & Gas Producers
9,141.41
09:09 28/05/24
Sound Energy
0.94p
08:01 28/05/24
The loan, which has a 10% coupon and a maturity date of 28 July, was originally provided by Simon Davies, a former director of the company.
Sound Energy also agreed to the simultaneous exercise of 9.62m warrants held by Davies for new shares at a price of 10.4p each.
Under the deed of release and variation, the loan would now be redeemed in full and cancelled on 1 April, saving Sound Energy about £32,000 in interest.
The warrants would be automatically, simultaneously exercised on 1 April, resulting in Sound Energy issuing 9,62m new shares to Davies.
At 12:31 GMT, shares in AIM-listed Sound Energy were down 1.2% to 82.25p each.