Block Energy, the production and development company focused on Georgia, has announced an extension to the Term of its existing $2.0 million senior secured loan facility.
Loan Facility:
The Loan Facility was originally announced in February 2023 and upsized to $2.0 million in May 2023. The original 18-month Term was extended by a further 18 months in July 2024 to February 2026.
The Loan Facility has now been extended for a further 18 months to 2 August 2027 on materially the same terms.
The extension provides the Company with continued balance sheet flexibility to support its working capital position as it continues to develop its high-impact strategic initiatives, including Projects III and IV and the CCS project.
Warrants
In connection with the extension, each lender will receive warrants ("New Warrants") exercisable at any point up until 2 February 2029.The exercise price of each warrant is 1.20 pence per ordinary share being the closing bid price on 28 January 2026. The number of New Warrants to be issued to each lender shall correspond to an exercise value equal to 50% of their respective loan commitment under the Loan Facility. Accordingly, the total number of New Warrants to be issued pursuant to this extension is 60,386,474.
The 44,682,643 warrants issued in connection with the February 2023 and May 2023 first and second tranches of the Loan (with exercise prices of 1.7p and 1.92p per share) will expire on 2 February 2026.
No fees or commissions were paid by the Company in connection with the extension of the Loan.
Related Party Transactions
Paul Haywood, Chief Executive Officer, has previously lent $115,000 to the Company under the Loan Facility (as announced February 2023). Fergus Robson, who was until November 2025 a director of various subsidiaries of the Company has previously lent $20,000 under the Loan Facility.
As a result of the amended Loan agreement, Paul Haywood will receive 3,472,222 New Warrants and Fergus Robson 603,865 New Warrants.
The Independent Directors (being Jeremy Asher and Philip Dimmock), having consulted with SPARK Advisory Partners Limited, the Company's nominated adviser, consider the terms of the amended Loan Facility, insofar as it relates to the participation of the related parties, to be fair and reasonable as far as shareholders are concerned.
Exercise of Options
The Company also announces that 4,096,347 ordinary shares of £0.01 each ('Ordinary Shares') have been allotted to a former employee, following an exercise of nil-cost share options granted under the Capital Structure Simplification as set out in the RNS dated 14 November 2025.
Application will be made for the admission to trading on AIM ('Admission') for the 4,096,347 new Ordinary Shares, which will rank pari passu in all respects with the Company's existing ordinary shares. Admission is expected to occur at 8.00 a.m. on or around 3 February 2026.
Total Voting Rights
Following Admission, the Company's issued share capital will comprise 1,015,743,839 ordinary shares, each carrying one voting right. The Company does not hold any shares in Treasury, therefore the total number of voting rights in the Company is 1,015,743,839.
This figure may be used by shareholders as the denominator for the calculations by which they may determine whether they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
Commenting, Phil Dimmock, Chairman of Block Energy plc, said:
'We are pleased with the continued support the Lenders have shown the Company as it works towards several major milestones, including advancing the Project III farm-out and continued development of the CCS project. The extension provides additional financial flexibility as we remain focused on delivering sustainable growth and long-term value for our shareholders.'
Source: Block Energy
