AIM-listed Prospex Energy, the AIM-quoted investment company focused on European gas and power projects, has announced that it is now in receipt of committed subscriptions totalling £1,346,050 for the offering of its unsecured Convertible Loan Notes.
Highlights
- Committed subscriptions of £1,346,050 (including the £985,000 previously announced on 12 January 2026) for the Company's offering of unsecured Convertible Loan Notes of £1 each, due at the end of June 2028 (the "Loan Notes").
- The proceeds from the Loan Notes have already funded the Company's 37% share of the 3D-seismic acquisition programme at the Selva Malvezzi production concession in Italy which will enable the next stage of the development of the asset which has major potential for the Company.
- The Loan Notes are convertible at 3p per ordinary share at any time at the election of the investor.
- Interest of 12% per annum is payable quarterly, with the first two interest payments on 31 March 2026 and 30 June 2026 to be capitalised and added to the loan principal rather than paid in cash.
- Loan principal to be repaid in three tranches at the end of December 2027, the end of March 2028 and the end of June 2028.
- Forecast increased gas production from the drilling campaigns on all three of the Company's production concessions is expected to cover the capital repayments.
- Net proceeds will be used to support the Company's ongoing activities, including current and future capital expenditure requirements.
- Ongoing operational costs and overheads continue to be met from production income generated by the Company's strategic asset portfolio.
Mark Routh, Prospex's CEO, commented:
'The Board of Prospex is very grateful for the support from investors for the Loan Note offering. The proceeds from the Loan Notes have already funded the Company's 37% share of the 3D-seismic acquisition programme at the Selva Malvezzi production concession in Italy, which was successfully completed by the operator last month.
'The Company enters 2026 with its ongoing commitments fully covered, securing its interests across its production and development concessions.'
Use of Funds and Structure
The funds raised from the issue of the Loan Notes will fund the ongoing growth of the Company and its current and future capital expenditures. Ongoing operational expenditures and overheads are currently covered from production income from the Company's portfolio of assets.
Selva Malvezzi
£800,000 of the net proceeds of the Loan Notes have been used to fund the Company's 37% share of development costs in respect of the 3D-seismic acquisition programme, which was completed last month at the Selva Malvezzi concession, in the Po Valley in Italy. The Company is now up to date with its obligations in the Selva Malvezzi Joint Venture.
Viura
£200,000 of the Loan Notes already issued in December 2025 settled the balance of the June 2025 cash-call on Viura in northern Spain, which was not fulfilled in cash by the Company at that time. In order to assist the Company, HEYCO Energy Group, Inc. agreed that this £200,000 was converted into the Loan Notes.
Tarba - El Romeral
A total of £300,000 of the net proceeds is anticipated to be used for a new transformer at the El Romeral power plant in Carmona southern Spain, due for delivery in approximately 6 months, with a final payment of £235,000 due. The transformer was ordered in November 2025 and a 20% deposit of £65,000 has already been paid.
Further Loan Note Subscriptions from the Directors of the Company
In addition to the £25,000 already subscribed on 19 December 2025, Alasdair Buchanan has subscribed an additional £1,800 in cash. In addition to the £20,000 already subscribed on 19 December 2025, Andrew Hay has subscribed an additional £6,250 in cash.
Related Party Transaction
The additional committed subscriptions by these directors for the Loan Notes constitute related party transactions under the AIM Rules. Due to the previous participation by all of the directors in the Loan Notes, there is not a director, or directors, independent of the issue of the Loan Notes to provide the necessary AIM Rule 13 related party transaction opinion. Accordingly, Strand Hanson Limited, the Company's Nominated Adviser, confirms it is satisfied that the terms of these subscriptions by Alasdair Buchanan and Andrew Hay are fair and reasonable insofar as the Company's shareholders are concerned.
Source: Prospex Energy
