Sound Energy, the Moroccan focused upstream gas company, announces that the Company has successfully placed 129,411,764 new ordinary shares Shares at a price of 2.125 pence per Placing Share, to raise £2.75 million before costs, conditional inter alia on the Placing Shares being admitted to trading on AIM.

The Company also announces a proposal to raise up to a further £1.75 million by way of a broker option through the issue of up to 82,352,941 additional new Ordinary Shares (the "Broker Option Shares" and, together with the Placing Shares, the "New Ordinary Shares") at the Placing Price in order to enable smaller qualified shareholders in the Company and other qualified investors to participate in the Fundraising.

The Placing Price of 2.125 pence per New Ordinary Share equates to a 1.5 per cent. discount to the mid-market closing price of the Company's ordinary shares ("Ordinary Shares") on 28 July 2020 of 2.1575p, being the last practicable date prior to the date of this announcement.

The net proceeds of the Placing of £2.57 million and any additional proceeds from the Broker Option will be used to strengthen the Company's cash position in adding to the Company's unaudited cash balances of approximately £4.2 million as at 30 June 2020 (which includes restricted cash balances associated with an Anoual exploration permit bank guarantee which is expected to be released to the Company during 2H 2020 following the recently announced restructuring of the Anoual exploration permit terms) whilst the Company continues to progress its phased development strategy as outlined in its announcement of 17 February 2020.

KeyFacts Energy: Sound Energy Morocco country profile