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CALGARY, Alberta, Oct. 31, 2024 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. is pleased to… (“Prairie Provident” or the “Company”) (TSX:PPR) announces the successful completion of its previously announced equity rights offering (the “Rights Offering”), which expired at 5:00 p.m. (MT) on October 28, 2024. .
Prairie Provident issued an aggregate of 480,000,000 common shares of the Company (“Common Shares”) pursuant to the Rights Offering and Standby Commitment (defined below) at a price of $0.025 per share, for aggregate gross proceeds of $12.0 million. This includes the 400,000,000 shares of common stock issued at the initial closing described below. Following completion, there are 1,196,405,336 common shares issued and outstanding.
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As previously announced, the Company’s majority shareholder, PCEP Canadian Holdco, LLC (“PCEP”), has fully exercised its primary subscription privilege under the rights offering to purchase 400,000,000 common shares in the initial closing completed on September 27, 2024, and has also provided the standby commitment. To purchase up to an additional 64,000,000 Common Shares not otherwise subscribed under the Rights Offering by others (the “Standby Commitment”). In addition to the 400,000,000 common shares purchased upon early exercise of the underlying subscription privilege, PCEP acquired 15,434,906 common shares under the standby commitment at the same subscription price of $0.025 per share. After the closing of the rights and reserve obligation offering, PCEP owns 956,360,015 common shares, or approximately 79.9% of the total outstanding common shares.
Of the 64,565,094 common shares purchased pursuant to the rights offering by shareholders other than PCEP, 41,429,021 shares were issued pursuant to the exercise of the primary subscription privilege and 26,136,073 were issued pursuant to the exercise of the additional subscription privilege. These figures include 16,600,046 ordinary shares acquired by the directors and management of the Company under the rights offering (2,087,453 under the basic subscription privilege and 14,512,593 under the additional subscription privilege).
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The Company did not pay any fees or commissions in connection with the Rights Offering or Standby Commitment.
The net proceeds from the rights offering are expected to fund a capital program focused on drilling at least two wells in the basal quartz formation before the end of 2024, well renewal operations to enhance the productivity of existing wells and general corporate purposes. A portion of the net proceeds were also used to settle an advance of $2.3 million under the Company’s second lien note facility, by way of an offset of $3.13 million (the equivalent of the advance in Canadian dollars) against the $10.0 million subscription price paid by PCEP upon early exercise. For the basic subscription privilege.
For details regarding the Rights Offering, please see Prairie Provident’s Rights Offering Circular dated September 13, 2024, a copy of which is available under the Company’s issuer profile on SEDAR+ at www.sedarplus.ca Or from their website www.ppr.ca.
About the prairie presenter
Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas properties in Alberta, including a site in the emerging basal quartz trend in the Michichi region of central Alberta.
For more information, please contact:
Dale Miller, CEO
Phone: (403) 292-8150
Email:invest@ppr.ca
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