Southern Energy Corp. Concludes $23.5 Million Financing and Royalty Deal

Southern Energy Corp., a company with assets in Mississippi, has secured a total of $23.5 million through debentures, share offerings, and the sale of a royalty interest. The financing results in $22 million in net proceeds after an original issue discount. This capital will be used to retire a prior credit facility and fund development projects, including completing wells in Gwinville.

Debentures worth $17 million were issued with a 8.8235% discount, bearing interest at 7% annually, convertible to shares before maturity in 2028. Additionally, a 6% royalty on future production was sold, providing $5 million in proceeds.

Impacting shareholder interests, the transaction will increase Southern's shares to 366,254,953 upon full conversion of debentures. The company has applied for the new shares’ trading on AIM.