Prospex Energy plc has raised £1.87 million via the issue of unsecured convertible loan notes to further the Selva gas discovery (37%) on the Podere Gallina permit in the Po Valley, Italy.
TERMS
A total of 27 individual subscribers include all four current directors and one former director of the company.
The loan notes are convertible at 4.25p per ordinary share at any time at the election of the investor.
Interest at 12% is payable quarterly compounded monthly, with the first interest payment on September 30 to be capitalised and added to the loan principal rather than paid in cash.
The loan principal is to be paid in three tranches: end of September 2023, end December 2023 and end March 2024.
| Director | Amount | |
| Bill Smith | £50,000 | |
| Richard Mays | £36,000 | via Sallork Limited (Directors R Mays & E Mays) |
| Richard Mays | £50,000 | via the SIPP of R and E Mays |
| Alasdair Buchanan | £50,000 | |
| Mark Routh | £50,000 | |
| James Smith (and partner) | £70,000 |
USES
Prospex said that net proceeds would go towards the company’s share of development costs (c. £2.3m) at the Selva gas discovery as well as working capital.
The company aims for first gas by Q2 2023, subject to further funding being secured for cash calls expected in March 2023 by way of commercial debt, or other financing available at the time.
INCREASED COSTS
Chief executive Mark Routh added that the company was experiencing “significant increases in budgeted costs” related to planned development activity.
This is due to many factors including global supply chain complexity, increased costs of energy, materials and staffing all of which put pressure on schedule and costs.