CALGARY, Alberta – Prospera Energy Inc. (PEI): TSX: PEI-V; OTC (USA): GXRFF; FRA (Germany): OF6A
Prospera Energy Inc. (“Prospera” or the “Corporation“) wishes to provide details in respect to its recent property acquisitions. Further to the Corporation’s press release of July 21, 2022, Prospera has closed its previously described debt settlement and working interest acquisitions agreements.
Pursuant to an arms-length debt settlement agreement dated February 16, 2022, the Corporation settled debt owing to it by joint venture partner Petrolia Canada Corporation of approximately $1,700,000 by the acquisition of an undivided 13.423% working interest in the Cuthbert, Luseland and Hearts Hill properties located in Saskatchewan and Alberta (the Properties). The Corporation also agreed to purchase Petrolia’s remaining 14.577% working interest for $585,000, payable by $75,000 in cash and $510,000 by the issue of convertible debentures pursuant to a purchase and sale agreement and a subscription agreement, both dated January 27, 2022. This transaction resulted in Prospera owning at closing a total undivided working interest of 69% in the Cuthbert and 84% in Luseland and Hearts Hills.
The convertible debentures are convertible into common share units at the option of the holder at $0.05 during the first year and $0.10 during the second year, bear interest at 8% per annum, and are for a two-year term. Each unit consists of one common share and one warrant exercisable at $0.075 for two years from issuance, subject to the Corporation’s right to accelerate the expiry date if the common shares of the Corporation trade at $0.30 for a period of 20 consecutive days. Applicable interest will be payable in cash or shares at the then market price, at the option of the Corporation.