Synergia Energy Ltd (AIM:SYN) shares tumbled more than 10% in Wednesday morning’s early deals after announcing a new convertible loan agreement for £650,000.
The AIM-quoted firm, which changed its name from Oilex in July 2022, is issuing loan notes that will mature in a years’ time, carry 5% interest and will be convertible into equity from November onwards at a price of 0.08p.
Synergia said in a statement that the proceeds of the funding will be used for working capital purposes.
Just over half of the loan notes are being subscribed for by Republic Investment Management, a major shareholder in the company currently holding 16.8% of its equity.
Around 853mln additional Synergia shares will be issued if the loan notes are fully converted.
In London, Synergia shares are down 10.69%, changing hands at 0.13p each.