Prospera Energy Announces 1st Closing of Debt Financing for 2023 Capital Development Program
April 13 2023 - 2:00AM
Prospera Energy Inc.
PEI: TSX-V; OF6A: FRA, OTC:
GXRFF
Prospera Energy announces the first closing of
CDN $3.015 million non-brokered private placement financing of debt
with an equity bonus to fund its 2023 phase 2 capital program that
entails SK HZ and AB directional drilling, LMR plan to reduce ARO
& environmental footprint and upgrade infrastructure to
accommodate planned growth. The financing is subject to approval by
the TSX Venture Exchange.
Debt Term Sheet
Issuer: |
Prospera Energy Inc. (“Prospera” or the
“Corporation”). |
Issue: |
Non-brokered offering (the "Offering") of units
("Units"). Each Unit consists of (I) one-thousand
common shares of the Corporation (issued at closing); and (ii) one
8% 2-year promissory note in the principal amount of $1,000. |
Term: |
Principal repaid at the end of 2 years |
Underlying Shares: |
Common shares of the Company listed on the TSX Venture Exchange
under the symbol PEI (the “Common Shares”). |
Use of Proceeds: |
Prospera intends to use the net proceeds of the Offering for
infrastructure upgrades to accommodate further production growth,
well development capital, well abandonment costs, ongoing ESG
initiatives and general working capital. |
Interest: |
8% interest per annum, calculated and paid quarterly in cash
starting after the 2nd quarter (interest in the first quarter is
compounded). |
Minimum Investment: |
Notes will be issued in denominations of $1,000, subject to a
minimum investment of $10,000. |
Offering Basis: |
Non- brokered private placement offering. |
An aggregate amount of up to $5,000,000 CAD may
be raised through this non-brokered private placement. The company
remains focused on minimal dilution financing options moving
forward and if fully subscribed, this debt financing would only
represent less than 2% equity dilution.
The securities will be offered to qualified
purchasers in reliance upon exemptions from prospectus and
registration requirements of applicable securities legislation. A
finder's fee in cash and/or warrants may be paid to eligible
finders in relation to this financing. These private placements are
offered in jurisdictions where the Corporation is legally allowed
to do so.
About Prospera
Prospera is a public oil and gas exploration,
exploitation and development company focusing on conventional oil
and gas reservoirs in Western Canada. Prospera will utilize
experience and knowledge to develop, acquire, and drill assets with
potential for primary and secondary recovery.
For Further Information:
Shawn Mehler, PR Email:
shawn@prosperaenergy.comWebsite: www.prosperaenergy.com
FORWARD-LOOKING STATEMENTS This
news release contains forward-looking statements relating to the
future operations of the Corporation and other statements that are
not historical facts. Forward-looking statements are often
identified by terms such as “will,” “may,” “should,” “anticipate,”
“expects” and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding future plans and
objectives of the Corporation, are forward looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements.
Although Prospera believes that the expectations
and assumptions on which the forward-looking statements are based
are reasonable, undue reliance should not be placed on the
forward-looking statements because Prospera can give no assurance
that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, risks associated with the oil and gas industry in
general (e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures.
The reader is cautioned that assumptions used in
the preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of Prospera. As a result, Prospera
cannot guarantee that any forward-looking statement will
materialize, and the reader is cautioned not to place undue
reliance on any forward- looking information. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may
differ materially from those anticipated. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement. The forward-looking statements
contained in this news release are made as of the date of this news
release, and Prospera does not undertake any obligation to update
publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by Canadian securities
law.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
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