Malcy's RNS comment..14 Jun 2023 07:37
.. This is incredible news for Sound shareholders, ahead of their AGM today (and stakeholder event)they drop the news they have found a farm-in partner and financing. The deal obviously has some way to go to close but getting an exploration well carried, funding for their major pipeline project on an almost 2:1 basis looks a pretty solid performance to me in these markets.
Doing a bridging finance to cover outstanding receivables as the state partner is being slow to cough up seems a wise move to keep activities moving along. The fixed conversion element at a premium to yesterday’s share price, if converted, would seem preferable to a deep discounted raise in a very thin AIM equity market.
Overall, it’s a step in right direction and I am sure, as this deal would have surprised many, that Sound will sort out its Moroccan project bank debt financing on the qt too. The shares reacted with a 12.5% rise and is now up at just shy of 2p which would mark an important milestone for which Chairman Graham Lyon deserves significant credit.