Business
Initial Closing of Private Placement
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About this update from Prospera Energy Inc.
[{"type":"text","content":"Initial Closing of Private PlacementNot for Distribution to U.S. News Wire Services or for Dissemination in the United StatesCALGARY, AB / ACCESSWIRE / December 17, 2019 / Prospera Energy Inc. (\"Prospera\" or the \"Corporation\") (TSX-V:PEI) is pleased to announce that it has completed an initial closing of its non-brokered private placement for gross proceeds of $250,500 through the sale of 8,350,000 units (\"Units\") of a maximum 12,000,000 at a price of $0.03 per Unit (the \"Private Placement\"). Each unit consists of one common share of the corporation and one-half common share purchase warrant. The warrants will not be listed. Each warrant shall be exercisable for one common share at a price of $0.06 per common share for a period to and including Dec. 18, 2020.The Corporation will utilize the net proceeds of the initial closing of the Private Placement for repayment of debt to the Corporation's principal lender.The Corporation will not be proceeding with the previously proposed $0.05 Unit Private Placement subject to a TSXV submission of September 21, 2019. Market pricing did not support such an offering and the Corporation received a discretionary waiver from the TSXV pursuant to their Minimum Pricing Requirement Bulletin of April 17, 2014 for the subject Private Placement.All securities in the Private Placement are subject to a four-month hold period from closing.The Corporation will continue to pursue completion of the maximum 12,000,000 Units in the Private Placement on or before January 20, 2020.Insiders of the Corporation have participated in the Private Placement for a total amount of $244,400 (90%). Of particular note, CEO Robert Richardson participated in the amount of $105,000 and President and COO Sarshar Ahmad participated in the amount of $50,100.On December 17, 2019, the Corporation made a $250,000 principal repayment to its lender, funded from the proceeds of the initial closing, with the Corporation improving its position under the Credit Facilities as follows:The lender has provided $250,000 of debt forgiveness such that the reduction of the principal amount owing under the Credit Facilities totals $500,000;The interest rate on the Credit Facilities has been reduced from 9.5 to 9.0 percent per annum effective December 17, 2019; andMonthly amortization payments have been reduced from the recent increase to ...