Business
Fund raise of £1.87m to fund first gas at Selva
Fund raise of £1.87m to fund first gas at Selva.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n \n \n Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas\n \n \n \n \n \n 25 July 2022\n \n \n \n \n \n \n Prospex Energy PLC\n \n \n \n ('Prospex' or the 'Company')\n \n \n \n \n \n \n \n \n Successful Fund Raise of £1.87 million\n \n \n \n \n Proceeds to fund portion of costs to first gas production at the Selva Field\n \n \n \n \n \n \n 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 £1.87 million via the issue of unsecured Convertible Loan Notes ('the Loan Notes') to existing and new investors ('the Subscribers'), including all of the directors of the Company.\n \n \n \n Highlights\n \n \n \n ·\n £1.87 million raised via the issue of unsecured Convertible Loan Notes of denomination £1 due end of March 2024\n \n \n ·\n Net proceeds to provide funds towards 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 working capital\n \n \n ·\n The Loan Notes are convertible at 4.25p per ordinary share at any time at the election of the investor. Existing share authorities are sufficient to satisfy any potential conversion of the maximum approved amount of £2.3 million plus any accrued interest\n \n \n ·\n Interest at 12% 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\n \n \n ·\n Loan principal to be paid in three tranches (end of September 2023, end December 2023 and end March 2024)\n \n \n ·\n This debt/equity hybrid financing allows the Company to fund the initial costs of the development at the Selva field, with the objective of achieving first gas from the field 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\n \n \n \n \n \n \n Mark Routh, Prospex's CEO, commented:\n \n \n \n \"We are extremely pleased to have raised financing at this challenging time in the markets. The proceeds of the Loan Notes will be used to fund the Company's 37% share of the development costs at the Selva gas discover...