18th Jun 2014 09:28
LONDON (Alliance News) - Sound Oil PLC said Wednesday that it had completed the due diligence and signing of investment agreements in relation to GBP14 million of institutional funding it announced in April.
The Mediterranean-focused oil and gas company had expected to complete this process in July.
Continental Investment Partners SA signed agreements for a total investment of GBP14.0 million at an average price of approximately 9.2 pence per share. Metanto Capital SA, a subsidiary of Continental, has subscribed for GBP7 million new shares at 8 pence each, or a 21.07% interest in the company's enlarged share capital.
Metanto has agreed to an 18-month lock-in period for half of the shares, and a 12-month lock-in for the other half.
Continental has also subscribed for GBP5.5 million in loan notes and 52.88 million warrants to subscribe for shares at 10.4 pence.
On completion of the issue of the loan notes, an existing GBP1 million loan from director Simon Davies will convert into a new loan with the same value and an annual coupon of 10%, repayable three years from the date of issue. Daviesalso will be issued 9.6 million warrants.
The company said it would now focus on completing a farm-down of the Nervesa discovery in Italy, preparing to drill the Badile prospect, and delivering growth outside of Italy.
Shares in Sound Oil were trading down 13% at 10.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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