- Sound Energy
- 20 March 2026 13:40:56
Source: Sharecast
The AIM-traded transition energy company said it had entered into a €1.3m term loan facility alongside a £0.5m equity placing.
It said the placing involved the issue of 10 million new shares at 5p each, representing a 37.5% discount to the previous closing price, with admission expected on 25 March.
The term loan, provided by an international investment bank, carried an interest rate of 20% per 120 days and was repayable by 31 December.
In the event of default, the lender had the option to convert outstanding amounts into equity at a price based on a 10-month volume-weighted average.
The funding was intended to bridge the company through to initial revenues from its Tendrara Phase 1 micro-LNG project, where commissioning was reportedly nearing completion.
Sound Energy said the gas gathering system and LNG tank had been fully tested, with final commissioning of the micro-LNG plant underway.
However, first gas was pushed back, with the operator now expecting commercial gas sales to begin early in the third quarter of 2026 due to delays in delivery of final equipment.
Alongside its gas operations, the company had formalised a solar joint venture in Morocco, Tayra Energy, with Gaia Energy.
The venture aimed to develop up to 270MW of photovoltaic capacity across multiple sites, targeting locations near medium-voltage grid infrastructure to support efficient power sales.
Initial development would focus on a shortlist of 12 sites, with land options already secured for five.
“The company is pleased to have secured a combined debt and equity financing package to fund working capital requirements to first gas from the Tendrara Phase 1 project.,” said chief executive Majid Shafiq.
He added that the funding “ensures the company remains fully funded through to this key milestone following the revised commissioning schedule” and would also support the development of the Tayra solar venture, strengthening the group’s ability to advance both gas and renewable energy projects in Morocco.
Following admission of the placing shares, Sound Energy’s issued share capital would comprise 228.3 million shares with voting rights.
At 1304 GMT, shares in Sound Energy were down 35.29% at 5.5p.
Reporting by Josh White for Sharecast.com.
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