Prospex Energy PLC on Tuesday said it agreed to settle an an aggregate debt of £188,745 in three convertible loan notes via the issue of new shares.
The AIM-listed investment company focused on European gas and power projects said the notes were issued in September to three individuals and were convertible at 5.5 pence per share. The notes have now been now settled in exchange for 3.4 million new Prospex Energy shares.
Shares in Prospex Energy were up 7.2% to 6.70p each in London on Tuesday morning.
Prospex Energy said the first of the three capital repayments plus accrued interest was due to be paid on Saturday, with the three note holders agreeing to settle the debt at the conversion price.
Admission of the new shares to trading on AIM in London is expected on or around Friday, taking the total number of Prospex Energy shares in issue to 326.7 million.
‘In September 2022 Prospex issued £500,000 convertible loan notes convertible at 5.5p to three individuals to help finance the company’s development project in Italy, which is now in production,’ said Chief Executive Officer Mark Routh.
‘The conversion of this debt into shares reduces the remaining debt in the company and improves our cash position. It also demonstrates a strong vote of confidence by our supportive loan note holders.
‘Unless they are converted, the total remaining 5.5p convertible loan notes plus interest to be accrued will be less than £360,000 which would convert into less than 6.6 million shares unless the capital is repaid.’
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