Not up with the lark this morning, Sound has announced that they have placed 129.4m shares at 2.125p to raise £2.75m before costs. The company also propose to raise a further £1.75m by way of a broker option through the issue of 82.4m new shares at the placing price to enable smaller qualified shareholders in the Company and other qualified investors to participate in the Fundraising.
This is only a 1.25% discount to last night’s close which is highly creditable in this market and the proceeds, in addition to total existing cash resources, are designed to be sufficient to meet the Company’s present working capital requirements through to March 2021. The funds will also enable the Company to continue moving the phase 1 development of the Tendrara Production Concession towards a final investment decision as well as progressing other planned 2020 corporate objectives, which include maturing options to seek to restructure its 2021 Eurobond obligations and secure project financing options for the Company.
This news from Sound continues the rehabilitation of the company under the new Executive Chairman Graham Lyon who commented on today’s news as follows
” Today’s Placing and the announcement of an opportunity for existing shareholders to participate under the same terms and conditions provides Sound with a stronger financial base to progress our planned activities. We have confidence in our strategy to bring Sound into a cash generating position and look forward to updating the market as future milestones are met.”
To be funded through to 3/21 is good news and indeed comforting that not only has the company found an appetite for shareholders at such a skinny discount but at almost twice the recent price. Recent activity in Morocco has shown that the country still has significant appeal to investors of a corporate nature and its domestic marketplace shows world leading opportunities.