Prospex Energy (PXEN) said it has received committed subscriptions of about £1 million for its unsecured convertible loan notes fundraise of up to £1.6 million.
The AIM-quoted investor in European gas and power projects has extended the offer period to Friday 16 January 2026 to allow time for further subscriptions to be processed.
The company said committed subscriptions total £985,000, including the £565,000 previously announced. The loan notes are priced at £1 each, mature at the end of June 2028, and are convertible at 3 pence per ordinary share at the investor’s election.
Interest of 12% per annum is payable quarterly. However, the first two interest payments due on 31 March 2026 and 30 June 2026 will be capitalised and added to the loan principal rather than paid in cash.
Loan principal is due to be repaid in three tranches at the end of December 2027, the end of March 2028 and the end of June 2028. Prospex said forecast increased gas production from drilling campaigns across its three production concessions is expected to cover the capital repayments.
Prospex’s CEO Mark Routh said: “The Company is very grateful for the support from shareholders towards the Loan Notes. In order to allow time for further subscriptions to be processed, the Company has extended the Loan Note offering until the 16 January 2026.
"The proceeds of the Loan Notes will mostly be used to fund the Company's ongoing capital expenditure commitments, in particular its 37% share of the cost of the 3D seismic acquisition programme on the Selva Malvezzi production concession in Italy which was successfully completed by the operator last month.
"The Company believes it has a diverse and highly prospective investment portfolio with the potential to deliver significant value over time and, on this basis, encourages shareholders to explore participating in the offer of the Loan Notes."
Prospex said £800,000 of net proceeds is earmarked for its share of development costs at Selva Malvezzi in Italy’s Po Valley, including cash calls linked to the 3D seismic programme completed last month. In Spain, £300,000 is planned for a new transformer at the El Romeral power plant, with a 20% deposit of £65,000 already paid and the final £235,000 due on delivery in six to eight months. In addition, £200,000 of notes already issued settled the balance of a June 2025 cash call at Viura in northern Spain, after HEYCO Energy Group agreed to convert that amount into the loan notes.
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Prospex is using the loan notes to keep capital moving across the portfolio. The planned allocation looks practical, with Selva Malvezzi’s seismic work already completed and the El Romeral transformer ordered, which should de-risk delivery against clear spend items. If forecast production growth from the upcoming drilling campaigns comes through, the staged repayments from late 2027 could be well supported, leaving the company better positioned to convert operational progress into shareholder value over time.