REG - SDX Energy PLC - Convertible Loan Agreement

SDX EnergyAnnouncement

27/07/2023 07:30

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RNS Number : 3968H  SDX Energy PLC  27 July 2023

 

27 July 2023

SDX ENERGY PLC ("SDX" or the "Company")

 

FUNDING TO ACCELERATE CORPORATE DEVELOPMENT AND MOROCCAN GAS PRODUCTION

·    Drilling campaign underway to increase Moroccan production on higher
gas pricing

·    Complementary energy transition opportunities being explored with
funding partners that leverage existing Moroccan footprint

·    Company continues to evaluate the proposals received for its Egyptian
assets

SDX is pleased to announce that, following the securing of higher gas prices,
the Company has secured financing to expand its Moroccan gas production. The
syndicated convertible loan agreement with Aleph Finance Ltd for up to $3.25
million (the "Convertible Loan") of which an initial amount of $2 million has
been drawn and will be immediately used to reduce outstanding debt to the
European Bank for Reconstruction and Development ("EBRD"), pay critical
service providers to accelerate the Moroccan drilling campaign and for general
corporate purposes. The Convertible Loan enables the Company to move the
business forward, towards an energy transition strategy, as it continues with
the process to sell its Egyptian assets with a view to deliver value to
shareholders.

 

The syndicated Convertible Loan is unsecured, convertible at any time at the
option of the individual lenders and repayable 364 days after the initial
drawdown of the Convertible Loan is made. The conversion price is
approximately 4.5 pence per Ordinary Share (or, if lower, the lowest issue
price for any Ordinary Shares issued during the life of the Convertible Loan).
If conversion occurs within ten business days of maturity, the conversion
price is approximately 6.6 pence per Ordinary Share.

 

Interest of SOFR+15% on the Convertible Loan will be payable on a quarterly
basis with an option for payment in kind, upon mutual agreement by the
borrower and lenders.

 

Daniel Gould, the Managing Director, commented:

 

"Our vision for SDX is to become the leading energy provider in Morocco,
delivering combined gas and renewable energy solutions to our existing and
growing customer base. SDX is uniquely positioned to leverage its long
presence and infrastructure in Morocco to execute this vision. In order to
deliver on this vision, the Company will access a wider capital market for the
renewable projects, which may be financed on a standalone basis."

**ENDS**

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

 

For further information:

 SDX Energy Plc

 Daniel Gould, Managing Director

 William McAvock, Chief Financial Officer

 Tel: +44 (0) 20 3219 5640

 Shore Capital (Nominated Adviser and Broker)

 Toby Gibbs/Iain Sexton

 Tel: +44 (0) 20 7408 4090

 Camarco (PR)

 Billy Clegg/Owen Roberts/Violet Wilson

 Tel: +44 (0) 20 3757 4980

 

 

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