Prospera Energy Announces Convertible Debt Private Placement and Operations Update

CALGARY, Alberta, May 12, 2025 (GLOBE NEWSWIRE) -- Prospera Energy Inc. (TSX.V: PEI, OTC: GXRFF) ("Prospera", “PEI” or the "Corporation")

Convertible Debt Offering
Prospera Energy Inc. ("Prospera" or the "Corporation") intends to raise up to $2,000,000 by way of non-brokered private placement. Funds will be raised by offering 12% convertible debentures with the principal amount convertible at $0.05 in the first year and $0.10 in the second year. Applicable interest will be payable in cash or shares at the Corporation’s discretion.

Issuer:	Prospera Energy Inc. (“Prospera” or the “Corporation”).
Issue:	Convertible Debenture with a two-year term.
Offering Amount:	$2,000,000 CAD (the “Offering”).
Conversion Price:	$0.05 if converted within the first year and $0.10 if converted in year two; convertible into units consisting of one common share and one warrant exercisable into another common share at $0.075 for a period of two years from initial closing. The Company reserves the right to force conversion in the event that the shares of the Company trade at $0.125 for a period of ten days or more.
Underlying Shares:	Common shares of the Company listed on the TSX Venture Exchange under the symbol PEI (the “Common Shares”).
Use of Proceeds:	Prospera intends to use the net proceeds of the offering for well reactivation, production optimization, strategic acquisitions and working capital.
Interest:	12% interest calculated quarterly and paid at maturity, or conversion date, whichever comes first. Interest may be paid in cash or in shares at the then market price, at the Company’s discretion.
Dividend Adjustment and Anti-Dilution:	The conversion price and warrants will also be subject to standard anti-dilution adjustments upon, inter alia, share consolidations, share splits, spin-off events, rights issues, and reorganizations.
Offering Basis:	Non-brokered private placement offering.
Target Close Date:	On or before May 31, 2025.
Security	The convertible debenture will be secured by a second-priority lien, subordinate to existing senior debt; pari passu.
Finders Fees	The Company may pay qualified finders a fee of 7% cash and 7% warrants.