Prospera Energy Utilizes Strong Balance Sheet to Capitalize 2023 Development Plan Accelerating Production Growth
March 03 2023 - 1:05AM
Prospera Energy Inc.
PEI: TSX-V; OF6A: FRA, OTC:
GXRFF
Prospera is structured to be well-capitalized in
2023 to fund the capital development program to capture the
significant remaining reserves in place. PEI total capitalization
($15 million) includes strategic debt offering below, combined with
substantial warrant exercise program of up to $10 million CAD in
2023 plus positive cash flow from operations.
PEI hereby announces that it is undertaking a
non-brokered private placement debt financing. A total of up to
$5,000,000 will be raised offering holders’ interest of 8% per
annum, with interest payments to be made quarterly for a term of 2
years. In addition to interest, holders will receive one common
share for each dollar of principal advanced, at the time of
investment. The company already has received a subscription for
$2,500,000 towards this offering.
Debt Term Sheet
Issuer: |
Prospera Energy Inc. (“Prospera” or the
“Corporation”). |
Issue: |
Non-brokered offering (the "Offering") of units
("Units"). Each Unit will consist 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. |
Issue Price: |
$1,000 per Unit. |
Offering Amount: |
Up to $5,000,000. |
Term: |
Principal repaid at the end of 2 years. |
Closing Date: |
Anticipated for March 31, 2023. |
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. |
Finders Fees: |
The Corporation may pay qualified finders a fee of 3% cash and 3%
warrants. |
Prospera’s strategic evaluation suggests equity
values are not appropriately accounting for the future potential of
its asset values (i.e., 350 million+ barrels in place). The company
is focused on minimal dilution financing options moving forward and
if fully subscribed, this debt financing would only represent less
than 2% equity dilution.
Prospera intends to use the net proceeds of the
debt offering, cashflow from operations, and substantial capital
raised from warrant exercises, to accelerate the company’s planned
drill program this spring, summer, and fall to further production
growth. There are significant economic advantages in drilling
during the upcoming summertime.
Parties interested in participating in this debt
offering should contact the company immediately. Insiders may
participate in this offering. Prospera is relying upon exemptions
contained in MI61-101 from the requirements for an independent
evaluation and minority shareholder approval. This offering is
subject to approval from the TSX Venture exchange.
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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