Conversion of Loan Notes and TVR

Prospex Energy PLC

22 December 2023

 

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

22 December 2023

Prospex Energy PLC

('Prospex' or the 'Company')

Conversion of Loan Note Debt and TVR

Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, announces that it has received notices to convert an aggregate debt of £182,140.95 in three convertible loan notes (the "Convertible Loan Notes") in exchange for the issue of 3,311,654 new ordinary shares of 0.1p each in the Company ("Ordinary Shares") in accordance with the terms of the loan notes.

The abovementioned Convertible Loan Notes of original aggregate value of £500,000 were issued to three individuals and are convertible at 5.5p per share pursuant to a Convertible Loan Note Deed dated 2 September 2022.  The second of three capital repayments plus accrued interest was due to be paid on 31 December 2023 and the three Convertible Loan Note holders have agreed to settle this debt by converting it into shares at the conversion price of 5.5p per share.

Admission to Trading and Total Voting Rights

The Company has applied to the London Stock Exchange for the admission of 3,311,654 new Ordinary Shares to trading on AIM ("Admission") as a result of the above conversion.  Admission is expected to occur on or around 2 January 2024.  There are currently 329,272,881 Ordinary Shares in issue.  Following Admission there will be a total of 332,584,535 Ordinary Shares in issue.  This will be the number of Ordinary Shares that may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Remaining Debt in the Company

By the year end, the Company will also repay the last of three capital repayments, plus interest due on non-convertible loan notes issued in June 2021.  The original amount of these loan notes was £321,680 and is held by eight Prospex shareholders.  The final capital repayment plus interest to be repaid by 31 December 2023 on this instrument will be £113,715.

By the end of year reporting period for the Company, the above-mentioned actions will result in the Company having no long-term debt.  Short-term debt will amount to £168,487 being the final quarterly repayment of the September 2022 Convertible Loan Note instrument due on 31 March 2024, unless that is also converted into shares at 5.5p.  The total principal plus interest accrued to 31 March 2024, would be £175,240.

Mark Routh, Prospex's CEO, commented:

"In September 2022 Prospex issued Convertible Loan Notes of aggregate value of £500,000 convertible at 5.5p to three individuals to help finance the Company's development project in Italy, which is now in production and generating monthly cash-flow".  

"The second capital repayment of one-third of the outstanding loans plus accrued interest was due to be repaid on 31 December 2023.  I am pleased that all three Convertible Loan Note holders have again decided to take this repayment and interest in shares at the conversion price of 5.5p per share in accordance with the original term of the Notes.  This demonstrates another strong vote of confidence in the Company by our supportive Convertible Loan Note holders.  Unless also converted, the total remaining 5.5p Convertible Loan Notes plus interest accrued to 31 March 2024 will be £175,240 which would convert into 3,186,180 shares".

"It is satisfying to be able to go into the New Year with a much stronger balance sheet.  The debt reduction coupled with cash generation from Italy and Spain means that Prospex is well positioned to capitalise on other investment opportunities with a focus on diversified European energy projects".

"As 2023 draws to a close our two producing assets in Europe continue to generate cash.  Surplus funds so generated are being held and accumulated in the Company's investment and joint venture vehicles to provide funding for future projects, in particular the three wells planned in Italy and the five wells going through the permitting process in Spain.  Current commitments do not require the company to raise any additional capital externally".

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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For further information visit www.prospex.energy or contact the following:

Mark Routh	Prospex Energy PLC	Tel: [phone]
Ritchie Balmer Rory Murphy	Strand Hanson Limited	Tel: [phone]
Jerry Keen	Fox-Davies Capital Limited	Tel: [phone]
Andrew Monk (Corporate Broking) Andrew Raca/Alex Cabral (Corporate Finance)	VSA Capital Limited	Tel: [phone]
Ana Ribeiro / Susie Geliher	St Brides Partners Limited	Tel: [phone]

 

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