CALGARY, Alberta, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") (TSX:PPR) is pleased to announce the closing of the initial $10.0 million subscription by its principal shareholder, PCEP Canadian Holdco, LLC ("PCEP"), under the Company's previously-announced $13.2 million rights offering (the "Rights Offering").
Up to 529,579,000 common shares of Prairie Provident ("Common Shares") are issuable under the Rights Offering at a subscription price of $0.025 per share, for an aggregate subscription price, if fully subscribed, of $13,239,475. The $10.0 million subscription by PCEP represents its pro rata share (approximately 75.5%) of the Rights Offering, and resulted in PCEP acquiring an additional 400,000,000 Common Shares. The subscription price was partially paid by way of a $3.13 million setoff against a prior US$2.3 million advance under the Company's second lien note facility received in May 2024, fully extinguishing that indebtedness, with the $6.87 million balance paid to Prairie Provident in cash.
Directors and management of the Company have delivered and funded an additional $400,000 in subscriptions under the Rights Offering, for an aggregate of 16,000,000 Common Shares, which will be closed on conclusion of the Rights Offering.
The Rights Offering will remain open, and subscription rights distributed thereunder ("Rights") may be validly exercised by eligible holders thereof, until 5:00 p.m. (Mountain time) on October 28, 2024, at which time any unexercised Rights will ...
