LONDON (ShareCast) - (Sharecast News) - Synergia Energy has entered into a convertible loan agreement with existing and new shareholders, it announced on Wednesday, to secure a new facility of £0.65m.
The AIM-traded company said the facility would carry an interest rate of 5%, with the option to convert the loan and interest payable to that point in the period between the option date of 13 November 2023 and the maturity date of 13 February 2024.

In that event, the loan principal and accrued interest would be payable by the company in new, fully-paid ordinary shares at a 0.08p conversion price, equating to a maximum issue of 853,125,000 new shares.

There was no option for Synergia to choose to repay ahead of the maturity date, or to elect to make repayment in cash.

"Republic Investment Management participated in £0.33m of the convertible loan, and accordingly will be issued a maximum of 407,500,000 new common shares at Maturity in the event that it elects to convert the principal and accrued interest at that time," the board said in its statement.

Republic has a current shareholding of 16.8%, and was thus considered a 'substantial shareholder' under the AIM rules.

"The directors of the company, having consulted with Strand Hanson, the company's nominated adviser, consider that the terms of the convertible loan with Republic are fair and reasonable insofar as the company's shareholders are concerned."

At 1134 GMT, shares in Synergia Energy were down 11.03% at 0.13p.

Reporting by Josh White for Sharecast.com.

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