23rd Jul 2014 11:01
LONDON (Alliance News) - Sound Oil PLC Wednesday said it has issued the final tranche shares as part of GBP14 million in new institutional equity funding into the company announced in April.
The Mediterranean-focused upstream oil and gas company said in April that Continental Investment Partners SA would inject the GBP14.0 million at an average price of approximately 9 pence per share, in order to help Sound Oil develop its Nervesa and Badile operations.
On Wednesday, Sound Oil said it has now issued 64.3 million shares to a subsidiary of Continental Investment Partners, Metano Capital SA, which represents the final of two tranches of the GBP7 million equity issuance part of the funding.
The company said the remaining debt based tranche, totalling a further GBP5.5 million, should be completed shortly.
The company also said at the time of announcing the fundrasing that on completion of the issue of loan notes to Continental, a separate GBP1 million loan from its Non-Executive Chairman Simon Davies will convert into a new loan with the same value, which will involve the issuance of 9.6 million in warrants to Davies.
Sound Oil said that as a result of the share issuance to Metano Capital, Continental Investment Partners will hold a 15.48% stake in the company.
In April, the company said that once the shares, loan notes and warrants are issued, the intention is for Continental Investment Partners to have the right to nominate two non-executive directors to Sound Oil's board. The current intention is for Continental's managing partner, Marco Fumagalli, currently a non-executive director at Sound Oil, to be one of them. Fumagalli holds 25% of Continental Investment Partners.
Sound Oil shares were down 2.8% to 11.30 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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