Synergia repaying, converting maturing loan notes

Synergia Energy updated the market on the maturity date of its 6,500 convertible loan notes on Monday, which were issued on 9 March 2023, and were set to mature on 9 March 2024.

The AIM-traded firm said it had initiated the repayment of a portion of the notes, totalling £0.39m, including accrued interest, covering 5,430 notes.

Additionally, it had committed to repaying £0.19m, inclusive of interest, for 1,750 notes, around 30 September.

To address the rest of the convertible loan notes, the company said it would issue 140,455,821 new ordinary shares, which were expected to be admitted to trading on AIM in early April.

As announced on 14 February, Synergia Energy entered into a farm-out agreement with Selan Exploration Technology.

The agreement entailed the transfer of 50% of the Cambay PSC to Selan, pending approval from the government of India.

On approval, the transfer would trigger a payment of $2.5m to Synergia Energy.

To mitigate equity dilution for shareholders, the company said it had secured loan funding of £0.4m from existing investors, on commercial terms and without security.

The board added that contrary to recent market speculation, the company had no immediate plans for equity financing.

At 1131 GMT, shares in Synergia Energy were up 2.56% at 0.1p.

Reporting by Josh White for Sharecast.com.