Investor deep dive
Sound Energy moves swiftly on to second well at A1 exploration programme in Morocco
Placing, Cost Reduction Update and TVR
18 June 2019
Sound Energy plc
("Sound Energy" or the "Company")
Placing, Cost Reduction Update and Total Voting Rights
Sound Energy, the Moroccan focused upstream gas company, announces the conditional placing of new ordinary shares to raise US$3.0 million before costs (the "Placing"). The net proceeds of the Placing of approximately US$2.7 million will strengthen the Company's cash position whilst the Company continues to explore the marketing of its Eastern Morocco portfolio which is expected to conclude prior to the end of 2019.
The Company also announces that, in light of the previously announced decision by the Board to pause operations until after the results of the current marketing process, the recently initiated structural cost reduction programme announced by the Company on 21 May 2019 has been extended to include a reduction in the base salaries of all of the Executive Directors amounting in aggregate to a reduction of 29% in these ongoing base salary costs in the six month period from 1 August 2019.
Pursuant to the Placing Sound Energy has issued, conditional on admission, 23,830,328 new ordinary shares of 1p each (the "Placing Shares") at a placing price of 10p per Placing Share. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 24 June 2019.
Following the issue of the Placing Shares, the Company's issued share capital will consist of 1,079,570,324 ordinary shares. Each share has one voting right and no shares are held in treasury; these figures may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
For further information please contact:
Vigo Communications - PR Adviser
Tel: +44 (0)20 7390 0230
James Parsons, Chief Executive Officer
JJ Traynor, Chief Financial Officer
Cenkos Securities - Nominated Adviser
Tel: +44 (0)20 7397 8900
RBC - Joint Broker
Tel: +44 (0)20 7653 4000
Macquarie Capital (Europe) Limited - Joint Broker
Tel: +44 (0)20 3031 2000
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
The Placing does not constitute a public offer of securities in accordance with the provisions of Section 85 of the Financial Services and Markets Act 2000 and accordingly a prospectus will not be issued in the United Kingdom.
This announcement does not constitute an offer of securities in the United Kingdom or in any other jurisdiction, including the United States of America.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
Quick facts: Sound Energy PLC
Market Cap: £80.97 m
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