Prospex Energy (PXEN)  said it has received committed subscriptions of £1,346,050 for its unsecured convertible loan notes fundraise.

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. 

The AIM-quoted investor in European gas and power projects 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 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."

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 agreed to convert this £200,000 into 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.

View from Vox

Prospex’s convertible loan notes look like a pragmatic way to keep work moving across Selva Malvezzi, Viura and Tarba - El Romeral, while limiting near-term cash strain by capitalising the first two interest payments. In addition, the clearly defined use of funds - with the Selva Malvezzi seismic already complete and the El Romeral transformer ordered - helps tie new capital to tangible delivery items.