Sound Energy PLC Redemption of Loan and Exercise of Warrants (6663W)
13 February 2017 - 6:00PM
UK Regulatory
TIDMSOU
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
GBP1 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 GBP32,000 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 GBP1
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 Tel: +44 (0)20 7830 9700
Patrick d'Ancona
Chris McMahon
Alexandra Roper
Sound Energy j.parsons@soundenergyplc.com
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser Tel: +44 (0)20 7131 4000
Azhic Basirov
David Jones
Ben Jeynes
RBC Capital Markets - Broker Tel: +44 (0)20 7653 4000
Matthew Coakes
Martin Copeland
Laura White
This information is provided by RNS
The company news service from the London Stock Exchange
END
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