Sound Energy inks bridge finance deal ahead of SEME sale completion

23rd Aug 2024 11:53

(Sharecast News) - Sound Energy has entered into a bridge financing facility agreement for up to £1.5m, it announced on Friday.

The AIM-traded firm said the short-term facility, introduced by Lyndisfarne Partners and provided by a high-net-worth individual trading as 2i Partners, would be available for three months starting from 1 September.

It said it had not yet drawn down any funds from the facility, which was designed to provide additional working capital if needed before the completion of the sale of Sound Energy Morocco East (SEME) to Managem.

The terms of the SEME sale were announced on 14 June, with the transaction expected to close in the coming months.

If Sound Energy did draw down funds under the facility, the borrowed amount would incur an interest rate of 15% per quarter.

The repayment was due within three months of the drawdown, or within three days after the completion of the SEME sale, whichever came first.

Additionally, if no funds were drawn during the availability period, Sound Energy would pay a £50,000 fee to the lender.

The facility would be secured by a charge over the shares of Arran Energy Holdings, a wholly-owned subsidiary of Sound Energy, upon the first drawdown.

At 1126 BST, shares in Sound Energy were down 0.67% at 0.89p.

Reporting by Josh White for Sharecast.com.