REG - Prospex Energy PLC - Conversion of Loan Notes and TVR

Prospex EnergyAnnouncement

22/12/2023 07:00

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RNS Number : 6770X  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.

 

* * ENDS * *

 

 

For further information visit www.prospex.energy (http://www.prospex.energy)
or contact the following:

 

 

 Mark Routh                                    Prospex Energy PLC            Tel: +44 (Tel:+44) (0) 20 7236 1177
 Ritchie Balmer                                Strand Hanson Limited         Tel: +44 (0) 20 7409 3494

Rory Murphy
 Jerry Keen                                    Fox-Davies Capital Limited    Tel: +44 (0) 20 3884 7447
 Andrew Monk (Corporate Broking)               VSA Capital Limited           Tel: +44 (0) 20 3005 5000

Andrew Raca/Alex Cabral (Corporate Finance)
 Ana Ribeiro / Susie Geliher                   St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

 

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