Prospex Energy PLC (AIM:PXEN) Successful Fund Raise of £500,000

Proceeds completes the funding of costs to first gas production at the Selva Field

Prospex Energy PLC (AIM: PXEN), the AIM-quoted investment company focused on European gas and power projects, is pleased to announce that it has raised £500,000 via the issue of unsecured Convertible Loan Notes (‘the Loan Notes’) to existing and new investors (‘the Subscribers’).


· £500,000 raised via the issue of unsecured Convertible Loan Notes of denomination £1 due end of March 2024.

· Net proceeds completes the funding of the Company’s share of development costs (totalling c. £2.3 million, which includes £200,000 of contingency) at the Selva gas discovery on the Podere Gallina Permit, in the Po Valley in Italy, as well as providing additional working capital to the Company.

· The Loan Notes are convertible into new Ordinary Shares at a price of 5.5p per ordinary share, the closing price on Friday 2 September 2022, at any time at the election of the investor. Existing share authorities are sufficient to satisfy any potential conversion of the maximum approved Loan Notes authority (of £500,000) loan plus any accrued interest.

· Interest at 15% is payable quarterly compounded monthly, with the first interest payment on 30 September 2022 to be capitalised and added to the loan principal rather than paid in cash.

· Loan principal to be paid in three tranches (end of September 2023, end December 2023 and end March 2024). These repayment terms mirror those of the £1.87 million convertible loan notes issued in July 2022.

· This debt/equity hybrid financing allows the Company to fund the all the development costs to first gas at the Selva field, which is targeted by Q2 2023.

Mark Routh, Prospex’s CEO, commented:

“We are extremely pleased to have completed the financing to first gas, together with providing additional working capital, while the capital markets are still challenging.

“The proceeds of these Loan Notes combined with the loan notes issued in July 2022 will be used to fund the Company’s 37% share of the development costs at the Selva gas discovery on the Podere Gallina Permit in Italy and for general corporate purposes. The Operator of the Podere Gallina licence in Italy, Po Valley Energy (ASX:PVE) has pressed on with all procurement activities to ensure that the schedule to first gas is not delayed.

“We remain on schedule for first gas from the Selva field in Q2 2023 where we predict substantial revenues to be generated from the gas production. I would like to take the opportunity to thank our existing shareholders for their continued support and welcome our new Subscribers.”

Further Information on the Subscribers and the Loan Notes

The £500,000 Loan Notes have been issued to three individual subscribers. The new Loan Notes pay 15% interest quarterly, compounded monthly, with the first quarterly interest payment on 30 September 2022 capitalised and added to the loan principal. Quarterly cash interest payments will be made thereafter with the first payment on 31 December 2022.

Unless converted into new Ordinary Shares at a price of 5.5p, the principal is to be repaid in three equal capital repayments scheduled on 30 September 2023, 31 December 2023, and 31 March 2024 which fits conservatively within the expected first production from Selva in Q2 2023. These repayment terms mirror the schedule of repayments of the convertible loan notes issued in July 2022.

The Company can elect to pay the interest in Euros by giving 10 business days’ notice. The Company can elect, on a change of control of the Company, where a single party has over 50% of the issued share capital of the Company, to convert some or all of the issued Loan Notes, including capitalised interest, into Ordinary Shares at the lower of the 5.5p conversion price or the prevailing market price. Accrued but unpaid interest may be paid in cash at the time of conversion or added to the loan principal and converted at the election of the Noteholder.

The Company can elect to repay the Loan notes in full or part at any time by giving the noteholders 30 days’ notice.

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.

* * ENDS * *

For further information visit or contact the following:

Mark Routh

Prospex Energy PLC

Tel: +44 (0) 20 7236 1177

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