Helios Energy Raises A$691K to Advance Texas Presidio Exploration

Helios Energy Secures Convertible Note Funding

Helios Energy Ltd (ASX: HE8) announced on 7 February 2025 that it has successfully raised A$691,325 through the issuance of interest-free Convertible Notes. This capital injection is earmarked to support ongoing oil and gas exploration activities at the company’s Presidio Project in Texas, USA, as well as to repay existing director and staff loans and cover general business expenses.

The Convertible Notes, issued under favourable terms, are unsecured and bear no interest unless an event of default occurs. They offer investors the option to convert their notes into ordinary shares at a conversion price of $0.005 per share, subject to regulatory and shareholder approvals where applicable. Notably, 75,000 of these notes were subscribed by two company directors, with conversion contingent on shareholder consent.

Strategic Use of Funds and Regulatory Compliance

Managing Director Philipp Kin emphasized the importance of this funding round in maintaining the company’s regulatory standing in Texas. The proceeds will primarily finance critical geological and technical assessments, secure necessary licences, and ensure the company’s operating licences remain valid. Kin highlighted the swift execution and modest quantum of the raise as indicators of strong investor confidence in Helios’ asset position.

Additionally, Helios retains an undrawn $500,000 facility with Gleneagle Securities, providing further financial flexibility. The company’s approach to funding underscores a cautious yet proactive strategy to advance exploration while managing capital structure prudently.

Convertible Notes Terms and Market Implications

The Convertible Notes have a face value of $1 each and can be converted into shares at the discretion of Gleneagle Securities on behalf of subscribers during the conversion period. Importantly, conversion by related parties requires shareholder approval, ensuring governance oversight. The notes mature 12 months from the issue date, with repayment or conversion options available.

This funding mechanism allows Helios to bolster its exploration efforts without immediate dilution, while providing investors a potential equity upside. The unsecured and interest-free nature of the notes reflects a cost-effective capital solution amid the company’s operational needs.

Looking Ahead

With regulatory compliance secured and exploration activities funded, Helios Energy is positioned to advance its Presidio Project in the coming months. The company’s ability to convert these notes into equity will be a key factor in its capital management and shareholder value creation strategy. Investors will be watching closely for updates on exploration progress and any shareholder meetings regarding note conversions.