Prospera Energy closes $3-million private placement

Executive Summary

• Prospera Energy Inc. has successfully closed its previously announced private placement unit offering, raising total gross proceeds of $3 million. The offering was fully subscribed without the issuance of finders' fees or broker warrants and remains subject to final acceptance by the TSX Venture Exchange.
• The company announced an update to its share-for-debt settlement with four arm's-length vendors, detailing specific share issuances and deemed prices for each vendor to settle outstanding debts totaling approximately $82,143.84.
• Significant participation in the financing came from insiders and existing strategic shareholders, including Matthew Kenna, Brian McConnell, Shubham Garg, Countryman Investments, and entities associated with Peter Lacey, alongside a major Canadian financial institution.

Key Details

• Financing Structure:
  • Total Gross Proceeds: $3,000,000.
  • Status: Fully subscribed and closed; subject to final TSX Venture Exchange acceptance.
  • Fees: No finders' fees or broker warrants issued.
  • Use of Proceeds: Strengthen working capital, accelerate well reactivations, and support production optimization initiatives.
• Insider and Strategic Shareholder Participation:
  • Matthew Kenna: Subscribed $336,500 for 9,614,286 units.
  • Brian McConnell: Subscribed $80,000 for 2,285,714 units.
  • Shubham Garg (via White Tundra Investments): Subscribed $40,000 for 1,142,857 units.
  • Countryman Investments: Subscribed $235,758.
  • Entities associated with Peter Lacey: Subscribed $380,000.
  • Major Canadian Financial Institution: Facilitated a $1,000,000 subscription across multiple client accounts.
  • Total Insider/Strategic Subscription: Over $1,000,000.
  • Regulatory Status: Classified as a related party transaction under TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101; exemptions relied upon for minority approval and valuation requirements.
• Share-for-Debt Settlement Update:
  • Vendor 1: Settled $13,174.59 via 100,000 common shares at a deemed price of 13.2 cents per share.
  • Vendor 2: Settled $30,468.36 via 500,000 common shares at a deemed price of 6.1 cents per share.
  • Vendor 3: Settled $7,500.00 via 150,000 common shares at a deemed price of 5.0 cents per share.
  • Vendor 4: Settled $31,000.89 via 250,000 common shares at a deemed price of 12.4 cents per share.
  • Total Debt Settled: $82,143.84.
  • Total Shares Issued: 1,000,000 common shares.
  • Hold Period: Shares subject to a statutory hold period of four months and one day from issuance.
  • Regulatory Status: Transactions accepted by the TSX Venture Exchange.

Notable Quotes

• "The financing was fully subscribed and completed without the issuance of any finders' fees or broker warrants, reflecting strong investor support for Prospera's operational progress and forward development strategy."
• "Management believes the strengthened working capital position and improved financial flexibility will enable the company to continue expanding production while advancing initiatives aimed at long-term shareholder value creation."
• "The meaningful level of insider and strategic shareholder participation reflects strong internal confidence in Prospera's growth strategy, continuing operational improvements and long-term development potential."