- Prospera Energy Inc. (PEI) has received approval from the TSXV for a private placement originally announced on November 29, 2021 for gross proceeds of $2M
- Prospera completed a non-brokered private placement of secured convertible debenture units with total proceeds of $1,938,000
- The company also raised $102,000 by issuing 1,700,000 units at $0.06 per unit
- Prospera reserves the right to accelerate the expiry date of the warrants to 15 days
- Prospera Energy Inc. (PEI) is down 9.09 per cent, trading at C$0.05 at 11:52 am EST
Prospera Energy (PEI) has received approval for a private placement for gross proceeds of $2,040,000.
The company is issuing convertible debenture units and flow-through share units.
This private placement was previously announced on November 29, 2021, and was commenced in line with its restructuring plans to be compliant, profitable and steward amicable and functional relations with working interest partners and other stakeholders.
Prospera completed a non-brokered private placement of secured convertible debenture units with total proceeds of $1,938,000.
The debentures will bear interest of eight per cent per annum for a term of two years and can be converted into common share units of the corporation at a conversion price of $0.05 in the first year and $0.10 in the second year.
Each of these units consists of one common share and one share purchase warrant. Each warrant is exercisable at $0.075 for a period of two years from the date of closing subject to acceleration provisions.
It also may accelerate the expiry of the warrants in the event that the shares trades at $0.30 for 10 consecutive business days. Applicable interest will be payable in cash or shares.
In addition, it raised $102,000 by the issuance of 1,700,000 units at $0.06 per unit. Each unit consists of one flow-through share of the Corporation and one share purchase warrant.
Each warrant will entitle the holder to acquire one additional share at a price of $0.075 per warrant for a period of two years from the date the units are issued.
Prospera reserves the right to accelerate the expiry date of the warrants to 15 days, in the event the shares trade at $0.15 for 10 consecutive business days following the expiry of the four-month hold period.
For the flow-through share subscriber, the CDE incurred by December 31, 2021, will be renounced to the subscriber March 2022 and any CDE incurred by December 31, 2022, will be renounced to the subscriber March 2023 for the tax year 2022.
Insiders have participated in this private placement which results in this being a related party transaction pursuant to TSXV Policy 5.9 and MI 61-101. It is relying upon the insolvency exemption under these policies with respect to minority approval and valuation requirements.
It paid finders fees to qualified finders totalling $70,200 in cash and issued 936,000 in brokers warrants which are on the same terms as the warrants forming part of the units.
The number of issued and outstanding shares for Prospera is now 113,380,140. Securities issued pursuant to this private placement are subject to trading restrictions until April 10, 2022.
The private placement financing proceeds will be used to fund Prospera‘s restructuring process which is intended to allow the corporation to become compliant and profitable. The proceeds from this financing will be used to retire the corporation’s legacy debt and continue production optimization and development on all its properties.
Prospera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada.
Prospera Energy Inc. (PEI) is down 9.09 per cent, trading at C$0.05 at 11:52 am EST.
