Continental Focus, International Reach

Sound Energy in Cash Raising Placing

Wednesday, June 19, 2019

 Sound Energy issued a conditional placing of new ordinary shares to raise funds. The company is looking to raise $3 million before costs and the net proceeds will strengthen its cash position while it continues to explore marketing its Eastern Morocco portfolio.

The company revealed 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 program 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 August 1, 2019.

Pursuant to the placing Sound Energy has issued, conditional on admission, 23,830,328 new ordinary shares of 1p each 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 June 24, 2019.