Sound Energy Share Discussion Threads

[steelwatch] 04/12/2023 19:11

Oh Christ!

[jaknife] 04/12/2023 18:54

steelwatch,

"Aye, but after that £250k conversion, there's only £250k left outstanding and, since you posted JakNife @ 13:16, see RNS today @ 14:26:"

No!

That's how much of the principal that's left outstanding but there's also a huge chunk of accrued interest that needs to be dealt with. Let's go back to the original RNS:




"The first tranche of the Convertible Notes comprises £2.5 million with a fixed conversion price of 2.25 pence per ordinary share, a premium of approximately 28% to the closing price of 1.76 pence per ordinary share on 12th June 2023."

^^ This paragraph is designed to sucker in retail punters with the implication that the loan will be converted at a share price of 2.25p. However, you have to carry on reading to get to the skank:


"Upon conversion, interest shall be rolled up and paid as if the Convertible Notes were held to the redemption date (being five years from draw down), with such interest convertible at the lower of the applicable fixed conversion price and the average of the five daily VWAP calculations selected by the Investor out of the 15 trading days prior to the conversion date."

The interest rate is 15% and hence, for every chunk of £250,000 of convertible, interest will accrue of:

£250,000 principal x 15% interest rate x 5 years = £187,500

Furthermore, the conversion price for this is linked to the current VWAP (Volume Weighted Average Price) rather than being fixed at 2.25p.

Hence, after the last £250,000 of principal is converted, there will then be another £1,875,000 worth of shares to be issued and the price at which those shares are issued is largely irrelevant to the convertible investor because they will forward sell the shares that they expect to receive thus creating the VWAP price at which they are then converted.

JakNife

[steelwatch] 04/12/2023 18:36

Aye, but after that £250k conversion, there's only £250k left outstanding and, since you posted JakNife @ 13:16, see RNS today @ 14:26:

"As a result of the Noteholders' approval of the Proposal, the prior obligation for the Company to commence amortisation of the Notes at a rate of 5.0% of the EUR 25.3M Notes principal outstanding every six months from 21 December 2023 until maturity in December 2027 has now been removed"



Hopefully that largely will see an end to the ongoing death spiral, at least until they can get phases 1 & 2 up and running.

[jaknife] 04/12/2023 13:16

telbap,

"Well it’s clear the MMS have zero stock, who would sell at this low price? It’s now a waiting game for the eventual value to out and if you have the nerves, buying more at these low low prices."

Have you not been reading the RNSs? Sound have a death spiral loan and the death spiral loan investor sells £250,000 worth of shares EVERY month. Just last Thursday they RNSd the latest share dump:



There are still oodles of shares for them to sell, after they've sold the shares arising from the principal element of the bond they then have the shares to sell from the accrued interest element of the bond and they're the ones that get converted on a VWAP basis!

JakNife

[telbap] 04/12/2023 11:53

Well it's clear the MMS have zero stock, who would sell at this low price? It's now a waiting game for the eventual value to out and if you have the nerves, buying more at these low low prices. I think I might take another £2k worth only cos I am quite deep here already.

[telbap] 01/12/2023 17:14

So finally today the bid has moved up to 0.79, let's see what Mondays open brings to us.

[telbap] 24/11/2023 17:13

Playing with the so via spread again. True price has not moved

[telbap] 22/11/2023 13:23

https://x.com/soundenergyplc/status/1727221158058377609?s=46&t=PPjpXzl_aMkKEK4wZLMVNw Moving on nicely. We will see some good news soon I feel...

[telbap] 03/11/2023 18:38

Well short news and almost zero sales. Hmmmmm I wonder what that says?

[shymas] 30/10/2023 11:44

Patience is needed..this beauty is going in the right direction.only way is up and up now.

[telbap] 30/10/2023 11:12

Playing games again with the spread. Let's see if the move the bid up at close to bridge the gap.

[telbap] 30/10/2023 09:59

But deck me has it taken some time!!!

[telbap] 30/10/2023 09:59

On the positive side, there is a lot of infrastructure there, that would not be happening if the project was not going forward. It's a sticky time but I feel this is getting towards the end game now, has production is bloody close, then phase two pipeline and field drilling. This story is only going to get better.

[kazz] 30/10/2023 09:17

I guess it's better than nothing Tell, but missed the plant shot as still no equipment has been installed.
The planning for the site preparation and installing the equipment to go on it, is a lot to be desired
Regards.... Kazz

[telbap] 30/10/2023 08:43

New on twittar "X" todayhttps://f.io/8J99FfpD

[shymas] 26/10/2023 16:36

Telbap..so true.its logic.

[telbap] 26/10/2023 16:17

MMS opening the spread to hide later reported buys as sells. Lol who ever shorted it is buying back nice and cheap now

[shymas] 25/10/2023 11:15

Patience people..all will come good.Believe

[telbap] 25/10/2023 09:56

Morning steel. Yes it would appear oh dear is behind the curve

[steelwatch] 25/10/2023 07:41

...or breathing space to conclude the Calvalley farm out and drawdown of back costs??



as relating to the proposals for Calvalley's contribution

[ohdearohdearohdear] 25/10/2023 07:36

What are you on about?

Actually.........it has been two years. Are you not keeping up to date with all of the delays?

Do you know when the money runs out? GL has already told you when it does....tell us if you know. Then tell us how they are going to raise the money to keep the lights on until (at least) the end of the year.......

In the meantime, flow rate results from PRD due imminently. Do you not think that any sensible organisation would wait to see those results before spending 10's of millions on, potentially, a dead duck?

[telbap] 25/10/2023 07:33

Lol it's November 1st next Wednesday. We are talking 2 months, not 2 years.If that's all you can come up with then lol for another job.Well, a final line in the sand from sound towers. Let's see if they can keep to this and deliver a Christmas present we actually want.

[ohdearohdearohdear] 25/10/2023 06:59

And of course it almost certainly means that the Company will need to raise some more more to keep the lights on.

[ohdearohdearohdear] 25/10/2023 06:54

Feels as if the funders are dragging this out to see if any better opportunities in Morocco emerge over the next couple of months...........