Finance News Oil & Gas

Prospex converts £225,377 CLNs to 5.3m shares

Prospex Energy plc received notices to convert a total £225,377.72 in two convertible loan notes (CLNs) in exchange for 5,303,006 new ordinary shares of 0.1p each in the company.

The CLNs, issued in July 2022, are convertible at 4.25p per share.

On admission, Prospex will have a total of 312,603,360 ordinary shares in issue. 

Chief executive officer Mark Routh said that of the £1.87 million 4.25p CLNs issued in July 2022, just five remained of the original 28 loan notes holders who had yet to convert their loans and interest into Prospex shares. 

“The first capital repayment of one-third of the outstanding loans was due to be repaid on 30 September 2023. 

“The total remaining 4.25p loan notes now amount to less than £300,000 which would convert into around 7 million shares unless the capital is repaid.

“The conversion of these loan notes is very helpful for Prospex as it reduces the outstanding debt in the company and improves our cash position. 

“It is also beneficial to our supportive loan note holders since their new shares are now trading at more than a 50% premium to the conversion price of 4.25p per share.”