Best AIM Company 2016

RNS Number : 6663W
Sound Energy PLC
13 February 2017
 

13 February 2017

 

Sound Energy plc

("Sound Energy" or the "Company")

 

Redemption of Loan and Exercise of Warrants

 

Sound Energy, the African and European focused upstream gas company, announces that it has entered into an agreement for the early redemption of an existing loan with a view to simplify the Company's balance sheet and saving the Company the cost of the final interest payment.

 

The agreement provides for the early redemption of an existing £1 million loan (the "Loan") originally provided by Simon Davies, a former director of the Company, and the simultaneous exercise of 9,615,384 warrants to subscribe for new ordinary shares in the Company ("Ordinary Shares") at a price of 10.4 pence per Ordinary Share (the "Warrants") held by Simon Davies (the "Deed of Release and Variation"). The Loan, which was originally provided by Simon Davies in January 2014, has a 10% coupon and a maturity date of 28 July 2017. Under the Deed of Release and Variation, the Loan will now be redeemed in full and cancelled on 1 April 2017 (the "Effective Date"), saving the Company approximately £32,000 in interest which would otherwise have been due under the Loan. The Warrants will be automatically simultaneously exercised on the Effective Date, resulting in the issue by the Company of 9,615,384 new Ordinary Shares to Simon Davies (the "Warrant Exercise Shares"). The payment of the aggregate subscription price of £1 million for the exercise of the Warrants will be deemed satisfied on the redemption and cancellation of the Loan.

 

All security previously provided under the Loan will be released on the Effective Date.

 

Related Party Transaction

 

Simon Davies was a director of the Company within the 12 months preceding entry into the Deed of Release and Variation. Simon Davies is therefore deemed to be a related party of the Company under the AIM Rules for Companies (the "AIM Rules") and the Deed of Release and Variation is a related party transaction pursuant to Rule 13 of the AIM Rules. The directors of Sound Energy consider, having consulted with the Company's nominated adviser, that the terms of the Deed of Release and Variation are fair and reasonable insofar as the shareholders of Sound Energy are concerned.

 

 

For further information please contact:

 

Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon

Alexandra Roper

 

Tel: +44 (0)20 7830 9700

Sound Energy

James Parsons, Chief Executive Officer 

 

j.parsons@soundenergyplc.com

 

Smith & Williamson - Nominated Adviser

Azhic Basirov

David Jones

Ben Jeynes 

 

Tel: +44 (0)20 7131 4000

RBC Capital Markets - Broker

Matthew Coakes

Martin Copeland

Laura White

Tel: +44 (0)20 7653 4000

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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