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Sound Energy (LSE:SOU) has secured a bridge financing facility agreement for up to £1.5 million, as announced on Friday. This short-term financial arrangement, facilitated by Lyndisfarne Partners and provided by a high-net-worth individual operating under the name 2i Partners, is set to be available for a three-month period starting from 1 September.
At present, Sound Energy has not drawn any funds from this facility. The primary purpose of the bridge financing is to offer additional working capital as required before the completion of the sale of Sound Energy Morocco East (SEME) to Managem. The details of the SEME sale were first disclosed on 14 June, with the transaction expected to conclude in the forthcoming months.
Should Sound Energy choose to access funds from this facility, the borrowed amount will be subject to an interest rate of 15% per quarter. The repayment of these funds is required either within three months from the date of drawdown or within three days following the successful completion of the SEME sale, whichever event occurs first.
In the event that the facility remains unused during its availability period, Sound Energy will be liable to pay a fee of £50,000 to the lender. The facility will be secured by a charge over the shares of Arran Energy Holdings, a fully-owned subsidiary of Sound Energy, upon the initial drawdown of funds.
This financing arrangement underscores the company's proactive approach in managing its capital requirements during the interim period before finalizing the SEME transaction. By securing this bridge facility, Sound Energy aims to ensure it has adequate resources to navigate any financial needs that may arise until the sale is completed.
As of 1126 BST, Sound Energy’s shares have experienced a slight decline of 0.67%, trading at 0.89p. This minor drop in share price reflects market reactions to the company’s announcement of the new financing arrangement and the ongoing developments related to the SEME sale.
