RE: Back to where we were16 Apr 2026 07:18
I was doing some research below and think the lender may hold the debt whilst under 2.5p per share? It’s a longer hold for me i think and i will try and build more of a position. GLA
Based on the current face value of approximately £6.7 million and a conversion price of 2.5p, the full conversion of the remaining loan note would result in the issuance of 268,000,000 new ordinary shares.
Dilution Breakdown
New Shares Issued: 268 million shares.
Current Shares in Issue: Empyrean Energy (EME) currently has approximately 1.19 billion shares in issue.
Dilution Percentage: A full conversion would represent a dilution of roughly 18.4% for existing shareholders.
Total Post-Conversion Shares: The total share count would rise to approximately 1.46 billion.
Strategic Considerations
Debt Elimination: While dilutive, a full conversion would completely remove the £6.7 million liability from EME's balance sheet, significantly improving its financial position ahead of first gas in 2027.
Lender Incentive: At a 2.5p conversion price, the lender is incentivised to convert only if the market share price sustains a level above this floor. If the share price is lower, the lender may prefer to remain a debt holder to claim preferential dividends from the Mako project revenue.
Market Sentiment: Large-scale share issuances often create short-term "overhang" where the market anticipates the lender might sell their new shares, potentially capping share price growth until the stock is absorbed.