Business
Second Major Principal Debt Repayment and Closing of Private Placement
Not For Distribution to U.S. News Wire Services Or For Dissemination In The United States ...
About this update from Prospera Energy Inc.
[{"type":"text","content":"Second Major Principal Debt Repayment and Closing of Private PlacementNot For Distribution to U.S. News Wire Services Or For Dissemination In The United StatesCALGARY, ALBERTA / ACCESSWIRE / January 2, 2020 / Prospera Energy Inc. (\"Prospera\" or the \"Corporation\") (PEI:TSX-V; OF6A:FRA) is pleased to announce the following:Credit FacilityThe Corporation has completed a second major debt repayment in December. On December 31, 2019, Prospera processed a second $250,000 principal repayment to its lender. This payment was fully funded by internal cash flow and has allowed the Corporation to further improve its position under the Credit Facility as follows:The lender has again matched the Corporation's $250,000 payment with equivalent debt forgiveness such that the reduction of the principal amount owing under the Credit Facility totals $500,000 in this transaction; andThe lender has agreed to extend the maturity date of the Corporation's Credit Facility to November 30, 2020.The matching $250,000 principle reduction in this transaction would not have been possible without the previously announced December 17, 2019 debt reduction achieved by the market-price private placement.Combined with amortization payments and the December 17, 2019 principal debt repayment, the Corporation has reduced its Credit Facility from $4,915,125 million on December 31, 2018 to approximately $2.415 million as of December 31, 2019, a reduction of nearly 51%.Private PlacementThe Corporation also announces that it has completed the final closing of its non-brokered private placement as of December 31, 2019. The Private Placement was held open after the December 17, 2019 repayment in order to allow potential and existing shareholders to also participate and thereby ensure fairness to all. The total gross proceeds of $250,500 were received 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.All securities in the Private Placement are subject to a four-month hold period from closing. Insiders of the Corporation have p...