Sunda Energy Converts 110000 Pounds of Debt into Equity

Sunda Energy PLC has announced the conversion of £110,000 in outstanding debt into equity following an agreement with Alumni Capital. The AIM-listed gas exploration company will issue 11.8 million new ordinary shares as part of the transaction.

The conversion comprises £100,000 of drawn loan notes and an additional £10,000 in finance charges. Alumni Capital has agreed to accept shares at a price of 0.9351 pence per share, representing a 15% discount to the lowest daily volume-weighted average price recorded during the 10 trading days preceding the agreement.

As part of the arrangement, Alumni Capital will receive 6.8 million warrants exercisable at 1.21563 pence per share. This exercise price reflects a 30% premium to the conversion price, providing the lender with potential upside participation should the company’s share price appreciate.

The newly issued shares will represent approximately 2.6% of Sunda Energy’s enlarged share capital. Trading of the new ordinary shares on AIM is expected to commence on 20 July.

Debt-to-equity conversions of this nature are typically undertaken by smaller listed companies seeking to strengthen their balance sheets whilst preserving cash resources. Such transactions reduce financial obligations and interest burdens, though they result in dilution for existing shareholders.

The transaction provides Sunda Energy with increased financial flexibility whilst allowing Alumni Capital to convert what was previously a debt position into an equity stake with warrant coverage for additional upside potential.