Sunda Energy Completes Debt to Equity Conversion with Alumni Capital

Sunda Energy PLC has announced the issuance of 11.8 million new ordinary shares following the conversion of £110,000 in outstanding debt by Alumni Capital. The transaction involves the conversion of £100,000 in drawn loan notes alongside a £10,000 finance charge.

The conversion has been executed at a price of 0.9351 pence per share, representing a discount of 15% to the lowest daily volume-weighted average price recorded during the preceding ten trading days. This pricing mechanism reflects standard market practice for such conversions whilst providing appropriate incentive to the debt holder.

As part of the arrangement, Alumni Capital will receive 6.8 million warrants exercisable at 1.21563 pence per share. The warrant exercise price has been set at a 30% premium to the conversion price, providing the company with potential future capital whilst offering Alumni Capital upside participation should the share price appreciate.

The newly issued shares represent approximately 2.6% of Sunda Energy’s enlarged share capital. The company has confirmed that the new shares are expected to commence trading on the AIM market on 20 July.

This debt-to-equity conversion reduces the company’s outstanding liabilities whilst strengthening the balance sheet through the elimination of debt obligations. For existing shareholders, the transaction results in modest dilution offset by the reduction in financial leverage and associated servicing costs.

The conversion provides Sunda Energy with improved financial flexibility as it continues its operations as an AIM-listed gas exploration company.