SDX Energy Secures Substantial Cash Infusion, Fueling Moroccan Ambitions
SDX Energy, a London-based energy firm, has taken a significant step towards strengthening its presence in Morocco with the receipt of a substantial cash infusion from the sale of its Egyptian assets. An initial $3.5 million from the sale of its West Gharib assets in Egypt has provided a financial boost, allowing the company to settle outstanding debts and invest in strategic growth initiatives.
In a statement, SDX Energy announced that it had used part of the proceeds to fully repay its $2.7 million secured EBRD reserves-based lending facility. This move enhances the company's financial flexibility and positions it to deliver greater value to its shareholders.
The cash influx represents a major milestone, as it aligns with SDX Energy's earlier decision to sell its Egyptian assets and focus on expanding operations in Morocco. This strategic shift demonstrates the company's commitment to seizing emerging opportunities and reinforcing its position in the Moroccan market.
Additionally, SDX Energy updated investors on its Convertible Loan Agreement with Aleph Finance Ltd, first announced in July 2023. The company had drawn $2.5 million of the $3.25 million Convertible Loan facility under the original agreement, leaving $750,000 unused. To address this, SDX Energy negotiated an extension to the drawdown period, allowing it to access the remaining funds.
SDX Energy intends to use the additional $750,000 to settle obligations with service providers involved in ongoing Moroccan drilling activities, as well as for general corporate purposes. It's important to note that the terms of the Convertible Loan remain unchanged, with the loan being unsecured and convertible at the discretion of individual lenders.
With this significant cash boost and a strategic focus on Morocco, SDX Energy is poised to accelerate the divestment of its South Disouq assets in Egypt while expanding its footprint in the growing Moroccan market. The company's strategic decisions and financial maneuvering demonstrate its commitment to delivering long-term value to stakeholders and capitalizing on emerging opportunities in the dynamic energy sector.