Prospex Energy (PXEN ), the investment company focused on European gas and power projects, has issued £565,000 in unsecured Convertible Loan Notes to existing and new investors, including all of the company’s directors.
The company said it will now offer existing shareholders and qualified investors the chance to subscribe on the same terms, taking the total potential fundraise to up to £1.6 million. The offer remains open until 9 January 2026.
The Loan Notes are issued at £1 each, mature at the end of June 2028 and are convertible at 3p per ordinary share at the investor’s election. Interest is 12% per annum, payable quarterly, with the first two interest payments on 31 March 2026 and 30 June 2026 to be capitalised and added to principal rather than paid in cash.
Unless converted, principal is scheduled 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.
Proceeds are earmarked mainly for capital expenditure, including Prospex’s 37% share of the 3D seismic acquisition at Selva Malvezzi in Italy. Funding is also intended to support a new transformer at the El Romeral power plant in southern Spain, and to address a cash call relating to the Viura asset in northern Spain.
Prospex’s Chief Executive Officer Mark Routh said: “The proceeds of the Loan Notes will mostly be used to fund the Company's 37% share of the 3D seismic acquisition on the Selva Malvezzi production concession in Italy. A minimum of £800,000 is required to cover the cash calls in respect of this asset received and to be received from the operator. £300,000 of the fund raise to is cover the commitment for a new transformer at the El Romeral power plant in southern Spain which is on order for delivery later in 2026. The balance of the £200,000 cash call from HEYCO Energy Group, Inc. to fund the Viura asset which was due in June 2025 is to be transferred into the Loan Notes.
“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 consider participating in the offer of the Loan Notes.”
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This financing is positioned to cover Prospex’s near term capital commitments across Selva Malvezzi, El Romeral and Viura, while allowing the company to keep day-to-day costs supported by portfolio income. Meanwhile, the conversion feature gives investors flexibility if project progress supports a higher equity valuation ahead of maturity.