(Alliance News) - Sound Energy PLC said on Monday it intends to raise GBP1.5 million through a proposed share placing.
The company will issue shares at a price of 2.0 pence per share in a bid to strengthen the company's cash position, which stood at approximately GBP5.4 million at the end of November.
Shares in Sound Energy were down 33% at 1.96 pence per share on Wednesday morning following the announcement.
"On the back of the recent UK election result and following recent inbound interest in our company, the board is proposing to take the opportunity to strengthen our capital position via this proposed fundraising, ensuring we maintain strong financial headroom whilst we progress the previously announced prospective transaction," said Interim Chair Marco Fumagalli. "We look forward to updating the market on our progress in due course‎."
The Morocco-focused gas company said it continues to progress with plans to dispose of the majority of its eastern Morocco portfolio stake for a total of USD112.8 million. It expects to receive an initial gross payment of USD29.8 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Sound Energy (SOU)