The company said it will boost the previously announced bought deal short form prospectus financing to a total amount of C$4,000,350, representing 6,411,000 subscription receipts of the company and 3,261,000 common shares on a flow-through basis under Canada's Income Tax Act.
The bought deal financing will also include the issuance of 3,261,000 flow-through shares at a price per flow-through share of C$0.46 cents for total gross proceeds of approximately C$1.5mln.
This month, the company announced it had entered into an agreement to acquire Marquee Energy Ltd, with Marquee Energy shareholders to receive 0.0886 of a Prairie Provident common share for each Marquee share.
The bought deal financing is expected to close the week of Oct. 8, 2018.
Each unit shall consist of one common share of the company and one-half of one common share purchase warrant. Each warrant shall entitle the holder to acquire one common share at an exercise price of 50 cents for a period of 24 months from the closing of the offering.
The proceeds of the subscription receipt offering will be used for working capital and general corporate purposes in connection with the acquisition. The proceeds from the flow-through offering shall be used to finance qualified Canadian exploration expenses.
Shares of Prairie Provident were down 7.1% at C$0.39 on Friday.