Business
Issue of Convertible Bonds and Issue of Warrants
Issue of Convertible Bonds and Issue of Warrants.
About this update from Sound Energy Plc
[{"type":"text","content":"\n\n\nThe information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (\"MAR\") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n13 June 2023\n \nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nCorporate Update\nand\nIssue of Convertible Bonds and Issue of Warrants\n \n \nSound Energy (AIM: SOU), the transition energy company, is pleased to provide a corporate update in relation to the entry into exclusivity for the partial divestment of the Tendrara Exploitation Concession and the Grand Tendrara Exploration Permit, and a financing of up to £4.0 million by way of a fixed price, senior unsecured convertible bond instrument.\n \nKey Highlights\n· Binding 45 day period of exclusivity and non-binding term sheet entered into with Calvalley Petroleum (Cyprus) Limited (\"Calvalley\") for a partial divestment of a 40% working interest in the Tendrara Exploitation Concession and the Grand Tendrara Exploration Permit which will see, subject to agreement of definitive transaction documentation:\no Funding of the first US$48 million of Sound Energy and Calvalley's Phase 2 equity funded development costs by Calvalley, subject to final investment decision\no Funding of 100% of the TE-4 Horst well costs by Calvalley up to a cap of US$7 million\no Funding of 40% share of Phase 1 costs, including back costs net to Calvalley of approximately US$8 million (through to July 2023)\no Advancement to Sound Energy of additional Phase 1 and Phase 2 costs, if necessary and at the Company's election, repayable out of future revenue\n \n· Up to £4.0 million funding through the issue of senior unsecured convertible loan notes to provide the Company with liquidity ahead of receipt of outstanding receivables and/or receipt of Phase 1 back costs from Calvalley, if a partial divestment is ultimately completed.\n \nPartner and Potential Partial Divestment Update\n \nThe Company announced on 9 August 2022 that it had initiated a formal farm-out process to identify a partner for the Tendrara Production Concession and the surrounding Grand Tendrara and ...