Prairie Provident Announces Closing of Initial Subscription of $10 Million under Rights Offering

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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 subscription of $10.0 million by its principal shareholder, PCEP Canadian Holdco, LLC (“PCEP”), under the Company’s previously announced rights offering $13.2 million (the “Rights Offering”).

Up to 529,579,000 common shares of Prairie Provident (“Common Shares”) are available 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. PCEP’s subscription of $10.0 million 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 paid in part in cash of $3.13 million compared to the previous cost of $2.3 million under the company’s second financing facility acquired in May 2024, completely extinguishing that debt, with the balance of $6.87 million paid to Prairie Provident in cash.

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The directors and officers of the Company have contributed and financed an additional $400,000 in subscriptions under the Rights Offering, for a total of 16,000,000 Common shares, which will close upon completion of the Rights Offering.

The Rights Offering will remain open, and the registration rights distributed thereunder (“Rights”) may be lawfully exercised by their eligible owners, until 5:00 pm (mountain time) on October 28, 2024, at which time any unused Rights will automatically terminate. . and be void and worthless. Completion of PCEP subscriptions meets the minimum Entitlement subscription level. The rights began trading on the Toronto Stock Exchange under the trading symbol “PPR.RT” and will remain posted for trading until 12:00 pm (Eastern time) on October 28, 2024.

PCEP may acquire additional Common Shares pursuant to its pending $1.6 million Rights Offering obligation, where PCEP has agreed, by the terms and conditions of its pending purchase agreement with the Company, to purchase up to 64,000,000 Common Shares for less than the total number of Common Shares acquired on exercise under the Rights Offering Rights by owners other than PCEP and directors and managers. The number of additional Common Shares to be received, if any, will be determined upon completion of the Rights Offering after all subscriptions have been tabulated.

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For information regarding the Rights Offering, please see Prairie Provident’s rights circular dated September 13, 2024, a copy of which is available under the Company’s issuer profile on SEDAR+ at www.sedarplus.ca or on its website at www.ppr.ca.

Early Warning Disclosure – PCEP Canadian Holdco, LLC

As the holder of 540,925,109 Common Shares as of the close of business on the record date of the Rights Offering, PCEP received 540,925,109 Rights, representing its share of all Rights distributed under the Rights Offering, and each Right entitles the eligible holder to subscribe for 0.739474 of the Common Share at the price subscription fee of $0.025 per Common Share. PCEP acquired an additional 400,000,000 Common Shares (“Acquired Shares”) from Prairie Provident pursuant to the exercise of a basic subscription right under its 540,925,109 rights, for an aggregate subscription price of $10.0 million. Earned Shares are not available in the market.

Immediately prior to its acquisition of the Acquired Shares, PCEP had 540,925,109 Common Shares, which at that time represented approximately 75.5% of the then outstanding undiluted Common Shares. Following the acquisition of the Acquired Shares, PCEP now owns 940,925,109 Common Shares, representing approximately 84.3% of the total common shares now outstanding undiluted.

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Earned Shares are held for investment purposes. PCEP may in the future acquire additional securities, or in the future may sell securities, either in the open market, in private transactions, or otherwise, depending on market conditions, other investment opportunities, changing priorities, and other relevant factors.

An early warning report related to PCEP’s acquisition of the Acquired Shares will be filed by PCEP on SEDAR+, under the Company’s profile at www.sedarplus.ca. A copy of that report may be obtained by contacting William H. Bulmer at [email protected], by telephone at (214) 720-6204, or by mail at PCEP Canadian Holdco, LLC, 2200 Ross Avenue, Suite 4300W, Dallas, Texas , 75201.

PCEP is a Delaware limited liability company.

ABOUT PRAIRIE PROVIDENT

Prairie Provident is a Calgary-based company involved in the exploration and development of oil and natural gas fields in Alberta, including the emerging Basal Quartz trend position in the Michichi area of ​​Central Alberta.

For more information, please contact:

Ryan Rawlyk, President and CEO
Phone: (403) 292-8150
Email: [email protected]

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