Prospex Energy (PXEN) has raised total funding of £2 million through its Convertible Loan Note (CLN) offer, 25% above its original £1.6 million target, following strong demand in an extended subscription round.
The company confirmed it has secured an additional £653,950 in committed subscriptions, on top of the £1,346,050 announced in January 2026. Despite the oversubscription, the board capped the raise at £2 million to balance funding needs with limiting shareholder dilution.
The unsecured Loan Notes, priced at £1 each and maturing at the end of June 2028, carry an annual interest rate of 12%, payable quarterly. The first two interest payments will be capitalised rather than paid in cash. In addition, notes issued after 12 March 2026 are convertible at 3p per share after the first anniversary of subscription.
Repayment of the loan principal is structured across three tranches, due at the end of December 2027, March 2028 and June 2028. Prospex expects that forecast increases in gas production from its three production concessions will cover these repayments.
Proceeds from the fundraise will support ongoing operations and capital expenditure, while existing production income continues to cover operational costs and overheads.
Prospex Energy’s CEO Tom Reynolds said: “I am delighted by the support shown by existing and new investors for the Loan Note offering, resulting in the CLN being oversubscribed. The Board decided to cap the subscription level at £2 million to strike a balance between securing funding for value-adding activity and avoiding unnecessary dilution at this time, which we believe is in the best interests of shareholders.
“The funds raised will enable the Company to secure asset value and broaden its range of growth opportunities. I would like to thank all those who participated in the fundraise and I look forward to engaging with investors at the upcoming Investor Meet Company online event scheduled for 26 March 2026.”
View from Vox
A fully subscribed and capped raise points to strong investor backing, while also signalling management discipline on dilution. With repayments linked to anticipated production growth, delivery on drilling campaigns will be key to underpinning both cash flow and investor confidence going forward.